Cadence Design Systems Inc (NASDAQ:CDNS) shares came under pressure in early trading on Tuesday, despite the company reporting on Monday upbeat first-quarter results.
• Cadence Design Systems stock is feeling bearish pressure. Why is CDNS stock falling?
Here are the key analyst insights:
- KeyBanc Capital Markets analyst Jason Celino reiterated an Overweight rating, while raising the price target from $405 to $425.
- Rosenblatt Securities analyst Blair Abernethy maintained a Buy rating, while lifting the price target from $360 to $375.
- Needham analyst Charles Shi reaffirmed a Buy rating and price target of $400.
Check out other analyst stock ratings.
KeyBanc Capital Markets: Cadence Design Systems reported strong results, driven by a record hardware quarter and strength across all product categories and geographies, Celino said in a note. Total revenue grew 18.7% year-on-year to $1.474 billion, with Hexagon’s D&E (design and engineering) business contributing around $20 million, he added.
Management raised their full-year revenue guidance by $225 million to $6.125-$6.225 billion, the analyst stated. "When baking in the $160 million of contributions expected from Hexagon’s D&E business, and the $14 million organic beat, this translates to a net raise of ~$50 million vs. our prior model," he further wrote.
Rosenblatt Securities: Cadence Design Systems reported revenues of $1.474 billion, topping consensus of $1.450 billion, driven by stronger hardware demand, Abernethy said. Total revenue grew 18% year-on-year with the "continued uptake of Cadence's value-adding AI tools" and relative stability in China, he added.
"In recent months, management noted that it is seeing strong early interest and trialing of its new agentic AI offering, including ChipStack, which it believes should increase Cadence's overall TAM in time," the analyst wrote. The company guided to 2026 revenue growth of around 16.6%, which likely reflects an acceleration in organic growth to 13.6%, from its previous outlook of 12.3%, he further stated.
Needham: "Cadence reported a usual beat-and-raise quarter," Shi wrote in a note. While the company raised its full-year outlook, this largely reflects both organic and inorganic strength in the first half of the year, the analyst stated.
The company did not really raise its outlook for the back half of the year, he added. There is likely to be a gradual building up of agentic AI momentum, which could lead management to "meaningfully raise" their projections as the quarter progresses, Shi further said.
CDNS Price Action: Shares of Cadence Design Systems had declined by 4.68% to $320.92 at the time of publication on Tuesday.
Photo: Shutterstock
Login to comment