Mizuho analyst Siti Panigrahi has revised the price target for Cadence Design Systems (CDNS, Financial), reducing it from $350 to $300. Despite this adjustment, the Outperform rating for the company remains unchanged. This revision is part of a broader outlook adjustment for the software sector as a whole, intending to align with the recent compression in software company valuations.
The adjustment in price targets across the sector is a strategic move to reflect the current market environment. Nevertheless, the analyst notes that the recent downturn in stock prices could offer a promising opportunity for investors to buy. Mizuho anticipates that upcoming first-quarter reports will be robust, with management teams likely adopting a cautious outlook for the upcoming fiscal year.
Furthermore, the impact of tariffs is expected to have a minimal effect on the core fundamentals of software-as-a-service (SaaS) companies, suggesting stability in this area despite broader economic challenges.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Cadence Design Systems Inc (CDNS, Financial) is $316.51 with a high estimate of $355.00 and a low estimate of $200.00. The average target implies an upside of 21.47% from the current price of $260.56. More detailed estimate data can be found on the Cadence Design Systems Inc (CDNS) Forecast page.
Based on the consensus recommendation from 21 brokerage firms, Cadence Design Systems Inc's (CDNS, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Cadence Design Systems Inc (CDNS, Financial) in one year is $333.56, suggesting a upside of 28.02% from the current price of $260.56. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Cadence Design Systems Inc (CDNS) Summary page.
