Cadence Design price target raised to $375 from $355 at KeyBanc

KeyBanc raised the firm’s price target on Cadence Design (CDNS) to $375 from $355 to reflect higher conviction, while keeping an Overweight rating on the shares after hosting investor meetings with CEO Anirudh Devgan and IR Richard Gu this week. The firm says that to no surprise, the main topics of discussion revolved around China, opportunities at Intel, the new Millennium M2000, and IP and hardware demand. However, one area that KeyBanc believes up ticked is around Physical AI, which could grow to a vastly large market for semiconductors, as hyperscalers, autos, and A&D companies increasingly build their own silicon for these new use cases.