Wells Fargo analyst Joseph Quatrochi maintained a Buy rating on Cadence Design yesterday and set a price target of $365.00.
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Joseph Quatrochi’s rating is based on the expectation that Cadence Design will successfully navigate the short-term volatility caused by China’s restrictions, which have impacted the company’s earnings in the second quarter of 2025. Despite these challenges, the company’s updated guidance for 2025 is anticipated to largely offset the revenue losses from China, driven by a strong demand for its hardware verification cycle.
Moreover, the sentiment around Cadence Design remains positive, as evidenced by the company’s shares trading near all-time highs. The ongoing ramp-up of Cadence’s new Z3 and X3 hardware cycles, along with potential opportunities with Intel, are seen as key growth drivers. These factors contribute to the belief that Cadence Design is well-positioned to achieve its revised revenue targets, justifying the Buy rating.
In another report released on July 14, Loop Capital Markets also reiterated a Buy rating on the stock with a $370.00 price target.
Based on the recent corporate insider activity of 95 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CDNS in relation to earlier this year.