Reasons Behind Cadence Design Systems (CDNS) Decline Compared to the Overall Market Today
Written by Emily J. Thompson, Senior Investment Analyst
Source: NASDAQ.COM
Updated: Sep 03 20250mins
Stock Performance: Cadence Design Systems (CDNS) closed at $342.81, down 2.17%, underperforming compared to the S&P 500 and other indices, with a 3.96% decline over the past month, while upcoming earnings are projected to show a 9.15% increase in EPS year-over-year.
Analyst Outlook and Valuation: The Zacks Rank for CDNS is currently #3 (Hold), with a Forward P/E ratio of 50.74, significantly higher than the industry average, indicating a premium valuation; recent analyst estimate adjustments suggest a favorable outlook for the company's profitability.
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Intellectia
Analyst Views on CDNS
Wall Street analysts forecast CDNS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CDNS is 374.83 USD with a low forecast of 225.00 USD and a high forecast of 418.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
9 Buy
2 Hold
1 Sell
Moderate Buy
Current: 335.430
Low
225.00
Averages
374.83
High
418.00
Current: 335.430
Low
225.00
Averages
374.83
High
418.00
Citi
NULL
to
Buy
initiated
$385
2025-11-24
Reason
Citi
Price Target
$385
2025-11-24
initiated
NULL
to
Buy
Reason
Citi initiated coverage of Cadence Design with a Buy rating and $385 price target. The firm believes the electronic design automation market is "emerging as the backbone" of the next growth phase of artificial intelligence. The sector is brining intelligence from software to the physical world, which should drive double-digit revenue growth with 40% operating margins, the analyst tells investors in a research note. Citi sees a favorable fundamental setup for Cadence.
Oppenheimer
Edward Yang
Underperform
maintain
$200 -> $225
2025-10-28
Reason
Oppenheimer
Edward Yang
Price Target
$200 -> $225
2025-10-28
maintain
Underperform
Reason
Oppenheimer analyst Edward Yang raised the firm's price target on Cadence Design to $225 from $200 and keeps an Underperform rating on the shares following quarterly results. The firm cites a mixed Q3 225, noting that the stock was down 1% after-hours.
Wells Fargo
Overweight
maintain
$405 -> $410
2025-10-28
Reason
Wells Fargo
Price Target
$405 -> $410
2025-10-28
maintain
Overweight
Reason
Wells Fargo raised the firm's price target on Cadence Design to $410 from $405 and keeps an Overweight rating on the shares. The firm notes Cadence delivered a positive beat / raise as it continues to see strong broad-based demand. With expectations of B2B over 1.0x in Q4, bookings strength and 2026 growth setup remain key drivers of shares. Cadence remains easiest EDA to own, Wells argues.
JPMorgan
Overweight
maintain
$390 -> $405
2025-10-28
Reason
JPMorgan
Price Target
$390 -> $405
2025-10-28
maintain
Overweight
Reason
JPMorgan raised the firm's price target on Cadence Design to $405 from $390 and keeps an Overweight rating on the shares. The company reported strong Q3 results and guided to another quarter of solid growth, the analyst tells investors in a research note. The firm says Cadence's advanced chip design activity remains strong, especially in artificial intelligence and high performance compute applications.
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About CDNS
Cadence Design Systems, Inc. is an electronic systems designing company. The Company applies its Intelligent System Design strategy to deliver software, hardware and intellectual property (IP) that turn design concepts into reality. Its product categories include Core Electronic Design Automation (EDA), Semiconductor IP, and System Design and Analysis (SD&A). Core EDA includes software, hardware, and services used to design and verify a wide variety of semiconductors. The semiconductor IP portfolio includes silicon subsystems, software, and services that are used in semiconductor design. The SD&A category includes the software and services used to design and verify a wide variety of physical electronic systems. Its semiconductors are used in various industries, including automotive, aerospace, biotech, hyperscale and cloud computing, data centers, telecommunications, medical technology, industrial Internet of things (IIoT), and artificial intelligence (AI).
About the author
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Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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