Cadence Design price target raised to $350 from $300 at Stifel

Stifel analyst Ruben Roy raised the firm’s price target on Cadence Design to $350 from $300 and keeps a Buy rating on the shares following what the firm calls “another round of strong results.” While the Q1 outlook is modestly below consensus, the company’s initial outlook for FY24 implies 12% year-over-year revenue growth and 15% earnings growth and the firm believes Cadence management approaches full-year guidance “conservatively at the beginning of the year,” the analyst tells investors. The firm continues to view Cadence as well positioned to benefit from the acceleration of leading chip designs and believes that AI-enhanced EDA tool offerings likely provide a tailwind over the next several years, the analyst added.