Cadence Design named 2024 Top Pick, added to Conviction List at Needham

Needham raised the firm’s price target on Cadence Design (CDNS) to $315 from $268 and keeps a Buy rating on the shares. The firm is also naming the stock its Top Pick for 2024 and adding the name to Needham’s Conviction List, replacing Entegris (ENTG). Cadence Design should be the first to reach the “rule of 60” among the trio of EDA/IP names under the analyst’s coverage: ARM (ARM), Synopsys (SNPS) and Cadence Design, the analyst tells investors in a research note. ARM’s valuation is full, while the Synopsys potential Ansys (ANSS) deal is problematic in the near-term due to the lack of immediate synergies, but Cadence stands to benefit from expected growth re-acceleration coming from another strong renewal cycle in the second half of FY24 and the first half of next year, Needham added.