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CDNS Stock Forecast: Cadence Design Systems Inc. Price Predictions for 2025

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$295.40

-1.44 (-0.49%)

CDNS Stock Forecast 2025-2026

$295.40
Current Price
$81.05B
Market Cap
23 Ratings
Buy 18
Hold 4
Sell 1
Wall St Analyst Ratings

Distance to CDNS Price Targets

+23.6%
To High Target of $365.00
+10.0%
To Median Target of $325.00
-32.3%
To Low Target of $200.00

CDNS Price Momentum

-1.5%
1 Week Change
-7.0%
1 Month Change
-7.2%
1 Year Change
-1.7%
Year-to-Date Change
-10.2%
From 52W High of $328.99
+33.3%
From 52W Low of $221.56
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Latest CDNS Stock Price Targets & Analyst Predictions

Based on our analysis of 29 Wall Street analysts, CDNS has a bullish consensus with a median price target of $325.00 (ranging from $200.00 to $365.00). The overall analyst rating is Strong Buy (8.5/10). Currently trading at $295.40, the median forecast implies a 10.0% upside. This outlook is supported by 18 Buy, 4 Hold, and 1 Sell ratings.

The most optimistic forecast comes from Joe Quatrochi at Wells Fargo, projecting a 23.6% upside. Conversely, the most conservative target is provided by Edward Yang at Oppenheimer, suggesting a 32.3% downside.

Please note that analyst price targets are forward-looking estimates subject to substantial market, economic, and company-specific risks. Past performance does not guarantee future results, and actual stock performance may materially differ from these projections. Investors should conduct their own due diligence and consider their investment objectives and risk tolerance before making investment decisions.

CDNS Analyst Ratings

18
Buy
4
Hold
1
Sell

CDNS Price Target Range

Low
$200.00
Average
$325.00
High
$365.00
Current: $295.40

Latest CDNS Stock Forecasts by Analyst

These are the latest 20 analyst ratings and price targets for CDNS.

Date Firm Analyst Rating Change Price Target
May 16, 2025 Wells Fargo Joe Quatrochi Overweight Maintains $365.00
May 15, 2025 Keybanc Jason Celino Overweight Maintains $375.00
May 13, 2025 Needham Charles Shi Buy Reiterates $325.00
Apr 29, 2025 Baird Joe Vruwink Outperform Maintains $325.00
Apr 29, 2025 Rosenblatt Blair Abernethy Neutral Maintains $300.00
Apr 29, 2025 Mizuho Siti Panigrahi Outperform Maintains $325.00
Apr 29, 2025 JP Morgan Harlan Sur Overweight Maintains $330.00
Apr 29, 2025 B of A Securities Vivek Arya Buy Maintains $350.00
Apr 29, 2025 Needham Charles Shi Buy Reiterates $325.00
Apr 24, 2025 JP Morgan Harlan Sur Overweight Upgrade $325.00
Apr 16, 2025 B of A Securities Buy Maintains $0.00
Apr 15, 2025 Mizuho Siti Panigrahi Outperform Maintains $300.00
Mar 19, 2025 Oppenheimer Edward Yang Underperform Maintains $200.00
Feb 20, 2025 Baird Joe Vruwink Outperform Maintains $335.00
Feb 19, 2025 Rosenblatt Blair Abernethy Neutral Maintains $295.00
Feb 19, 2025 Loop Capital Gary Mobley Buy Maintains $340.00
Feb 19, 2025 Needham Charles Shi Buy Reiterates $325.00
Feb 19, 2025 Piper Sandler Clarke Jeffries Overweight Maintains $328.00
Feb 19, 2025 B of A Securities Vivek Arya Buy Maintains $350.00
Jan 13, 2025 Redburn Atlantic Lachlan Brown Buy Initiates $350.00

Cadence Design Systems Inc. (CDNS) Competitors

The following stocks are similar to Cadence based on their market capitalization and industry sector. These similar stocks potentially provide investors with alternative investment opportunities within the same market segment.

Cadence Design Systems Inc. (CDNS) Financial Data

Cadence Design Systems Inc. has a market capitalization of $81.05B with a P/E ratio of 75.1x. The company generates $4.87B in trailing twelve-month revenue with a 22.2% profit margin.

Revenue growth is +23.1% quarter-over-quarter, while maintaining an operating margin of +29.1% and return on equity of +25.9%.

Valuation Metrics

Market Cap $81.05B
Enterprise Value $80.62B
P/E Ratio 75.1x
PEG Ratio 43.3x
Price/Sales 16.6x

Growth & Margins

Revenue Growth (YoY) +23.1%
Gross Margin +86.5%
Operating Margin +29.1%
Net Margin +22.2%
EPS Growth +10.5%

Financial Health

Cash/Price Ratio +3.6%
Current Ratio 3.1x
Debt/Equity 51.9x
ROE +25.9%
ROA +12.7%
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Cadence Design Systems Inc. logo

Cadence Design Systems Inc. (CDNS) Business Model

About Cadence Design Systems Inc.

What They Do

Specializes in electronic design automation software.

Business Model

The company generates revenue primarily through the sale of its EDA software and engineering services. By providing essential tools that support the design and verification of integrated circuits, Cadence serves a diverse clientele, including semiconductor manufacturers and companies in telecommunications, consumer electronics, and automotive sectors.

Additional Information

Cadence Design Systems is recognized as a leader in the semiconductor industry's supply chain, offering innovative solutions that enhance efficiency in chip design. Its products are crucial for fostering advancements in technology across multiple industries.

Company Information

Sector

Technology

Industry

Software - Application

Employees

12,837

CEO

Dr. Anirudh Devgan Ph.D.

Country

United States

IPO Year

1990

Cadence Design Systems Inc. (CDNS) Latest News & Analysis

Featured Analysis
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Wall Street Bulls Look Optimistic About Cadence (CDNS): Should You Buy?

The average brokerage recommendation (ABR) for Cadence (CDNS) is equivalent to a Buy. The overly optimistic recommendations of Wall Street analysts make the effectiveness of this highly sought-after metric questionable. So, is it worth buying the stock?

Jun 19, 2025 By Zacks Equity Research Fundamental Analysis

Latest News

CDNS stock latest news image
Quick Summary

CDNS and Samsung have renewed their partnership to enhance next-generation chip design using AI-driven intellectual property on advanced technology nodes.

Why It Matters

The CDNS and Samsung collaboration signals innovation in chip design, potentially enhancing competitive advantage and growth prospects, which may positively influence stock performance.

Source: Zacks Investment Research
Market Sentiment: Positive
CDNS stock latest news image
Quick Summary

Wall Street analysts' recommendations influence investor decisions on stocks. Media reports on their rating changes can impact stock prices significantly.

Why It Matters

Wall Street analysts' ratings influence stock prices and investor sentiment, impacting trading decisions and market trends. Their credibility can sway investment strategies significantly.

Source: Zacks Investment Research
Market Sentiment: Positive
CDNS stock latest news image
Quick Summary

Cadence has expanded its collaboration with Samsung Foundry, establishing a multi-year IP agreement and joint development on the SF2P process node.

Why It Matters

Cadence's collaboration with Samsung Foundry enhances its market position and potential revenue through IP agreements, signaling growth opportunities in advanced semiconductor technologies.

Source: Business Wire
Market Sentiment: Neutral
CDNS stock latest news image
Quick Summary

Cadence Design Systems has strong recurring revenues and client retention, driven by its AI products. While facing risks like cyclicality and high valuation, it maintains robust cash flow and buybacks.

Why It Matters

Cadence Design Systems' strong market position and AI-driven growth prospects attract investor interest, while risks like cyclicality and valuation levels warrant careful consideration.

Source: Seeking Alpha
Market Sentiment: Positive
CDNS stock latest news image
Quick Summary

Zacks.com users are closely monitoring Cadence (CDNS), indicating potential investor interest. Further analysis of the stock's prospects may be warranted.

Why It Matters

Increased user interest in Cadence (CDNS) may indicate potential stock volatility or upcoming news, prompting investors to analyze its future performance and market sentiment.

Source: Zacks Investment Research
Market Sentiment: Positive
CDNS stock latest news image
Quick Summary

Cadence is partnering with NVIDIA to develop optimized solutions for the first industrial AI cloud.

Why It Matters

Cadence's collaboration with NVIDIA on industrial AI cloud solutions signals potential growth in AI technology, which could enhance market competitiveness and drive stock performance for both companies.

Source: Business Wire
Market Sentiment: Neutral

Frequently Asked Questions About CDNS Stock

What is Cadence Design Systems Inc.'s (CDNS) stock forecast for 2025?

Based on our analysis of 29 Wall Street analysts, Cadence Design Systems Inc. (CDNS) has a median price target of $325.00. The highest price target is $365.00 and the lowest is $200.00.

Is CDNS stock a good investment in 2025?

According to current analyst ratings, CDNS has 18 Buy ratings, 4 Hold ratings, and 1 Sell ratings. The stock is currently trading at $295.40. Always conduct your own research and consider your investment goals before making investment decisions.

What is the long-term price prediction for CDNS stock?

Wall Street analysts predict CDNS stock could reach $325.00 in the next 12 months. This represents a 10.0% increase from the current price of $295.40. Please note that this is a projection by Wall Street analysts and not a guarantee.

What is Cadence Design Systems Inc.'s business model?

The company generates revenue primarily through the sale of its EDA software and engineering services. By providing essential tools that support the design and verification of integrated circuits, Cadence serves a diverse clientele, including semiconductor manufacturers and companies in telecommunications, consumer electronics, and automotive sectors.

What is the highest forecasted price for CDNS Cadence Design Systems Inc.?

The highest price target for CDNS is $365.00 from Joe Quatrochi at Wells Fargo, which represents a 23.6% increase from the current price of $295.40.

What is the lowest forecasted price for CDNS Cadence Design Systems Inc.?

The lowest price target for CDNS is $200.00 from Edward Yang at Oppenheimer, which represents a -32.3% decrease from the current price of $295.40.

What is the overall CDNS consensus from analysts for Cadence Design Systems Inc.?

The overall analyst consensus for CDNS is bullish. Out of 29 Wall Street analysts, 18 rate it as Buy, 4 as Hold, and 1 as Sell, with a median price target of $325.00.

How accurate are CDNS stock price projections?

Stock price projections, including those for Cadence Design Systems Inc., are based on various factors including financial models, market conditions, and analyst forecasts. While these predictions provide valuable insights, they should be considered alongside your own research and risk tolerance.

Important Disclaimer

The information provided by Ticker Nerd is for educational and informational purposes only. It should not be considered financial or investment advice. Past performance is not indicative of future results. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions. Analyst ratings and price forecasts are sourced from Wall St analysts and other experts. These projections are speculative and do not guarantee future stock performance.

Last updated: June 21, 2025 7:25 AM UTC
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