Cadence Design Systems, Inc. (CDNS) is a software company valued at over $81 billion, offering products and tools to design electronic products. The company’s shares have underperformed the broader market in recent years, with a 1.9% decline over the past 52 weeks.
However, in Q3 last year, Cadence delivered better-than-expected earnings of $1.64 per share and revenue of $1.2 billion, leading to a 12.5% increase in its shares. The company’s top line grew 19.6% year-over-year, driven by soaring demand for its AI design products.
Analysts expect Cadence’s EPS to grow 20% year over year to $4.75 in the fiscal year ending December. The consensus rating among analysts is a “Strong Buy,” based on 14 “Strong Buy” ratings and one “Strong Sell.” Several analysts, including Mizuho, have raised their price targets for the stock, indicating potential upside of up to 18.6%.
The mean price target for Cadence’s shares is $326.72, representing a 10.7% upside from current levels. This suggests that investors see significant growth potential in the company’s AI design products and other segments.
Source: https://www.nasdaq.com/articles/cadence-design-systems-stock-outlook-wall-street-bullish-or-bearish