What Are Wall Street Analysts' Target Price for Cadence Design Systems Stock?

Company Overview - Cadence Design Systems, Inc. (CDNS) has a market cap of $81.6 billion and is a leading electronic design automation (EDA) software and semiconductor IP company, providing tools and platforms for designing complex integrated circuits and electronic systems [1] - Founded in 1988 and headquartered in San Jose, California, Cadence serves various sectors including semiconductor, hyperscale computing, automotive, aerospace/defense, and consumer electronics globally [1] Stock Performance - Over the past year, CDNS shares have underperformed the broader market, gaining only 1.9% compared to a 12.9% increase in the S&P 500 Index [2] - In 2026, CDNS stock is down 7.8%, while the S&P 500 Index has experienced a marginal dip [2] Market Dynamics - CDNS has outperformed the SPDR S&P Software & Services ETF (XSW), which has declined about 23.5% over the past year and 20.6% in 2026 [3] - The underperformance of CDNS is attributed to multiple compressions in high-growth semiconductor design software, investor rotation into cyclical and mega-cap AI hardware, and rising interest-rate sensitivity affecting long-duration growth stocks [3] - Moderating semiconductor design activity and normalization of bookings expectations after years of high EDA spending have also tempered sentiment despite solid revenue and margin execution [3] Earnings Expectations - For FY2025, analysts expect CDNS' EPS to grow by 25.8% to $5.66 on a diluted basis [4] - The company's earnings surprise history is mixed, with three out of the last four quarters beating or matching consensus estimates [4] Analyst Ratings - Among 23 analysts covering CDNS, the consensus rating is a "Strong Buy," with 17 "Strong Buy" ratings, one "Moderate Buy," and five "Holds" [4] - The configuration of analyst ratings has become more bullish compared to three months ago, with 16 "Strong Buy" suggestions [5] - Needham analyst Charles Shi reiterated a "Buy" rating on Cadence Design Systems with a price target of $390, reflecting confidence in the company's execution and growth outlook [5]