Cadence Design Systems (CDNS): Analyst Optimism Renews Focus on Valuation and Growth Potential

Simply Wall St.11-28

Cadence Design Systems (CDNS) has recently caught fresh attention after Citigroup began covering the stock with a Buy, highlighting renewed optimism around the company’s outlook. Analysts are focusing...

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Analysts are focusing...</p>\n\n<a href=\"https://simplywall.st/stocks/us/software/nasdaq-cdns/cadence-design-systems/news/cadence-design-systems-cdns-analyst-optimism-renews-focus-on\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU2125909593.SGD","symbol_name":"Natixis Thematics Meta R/A SGD","start_time":0,"source_url":"https://simplywall.st/stocks/us/software/nasdaq-cdns/cadence-design-systems/news/cadence-design-systems-cdns-analyst-optimism-renews-focus-on","article_id":"2586220719","we_media_id":null,"thumbnails":["https://images.simplywall.st/asset/company-cover/25941-main-header/1756252762518"],"rights":{"source":"simplywall_highlight","url":"https://simplywall.st/stocks/us/software/nasdaq-cdns/cadence-design-systems/news/cadence-design-systems-cdns-analyst-optimism-renews-focus-on","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2586220719","pubTimestamp":1764271336,"columns":[],"sourceInfo":{"source_id":"simplywall_highlight","name":"Simply Wall St."},"weMediaInfo":null,"summary":"Cadence Design Systems (CDNS) has recently caught fresh attention after Citigroup began covering the stock with a Buy, highlighting renewed optimism around the company’s outlook. Analysts are focusing on Cadence’s dominant position in electronic design automation and its durable growth potential.\nSee our latest analysis for Cadence Design Systems.\nThis upbeat analyst sentiment builds on a year of major moves for Cadence Design Systems, including the appointment of Dr. Luc Van den hove to its...","collect":0,"end_time":0,"defaultTopTitle":"simplywall.st","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU2125909593.SGD":"Natixis Thematics Meta R/A SGD","LU0312595415.SGD":"Schroder ISF Global Climate Change Equity A Acc SGD","LU1323610961.USD":"UBS (LUX) EQUITY SICAV - LONG TERM THEMES (USD) \"P\" (USD) ACC","LU0724618433.USD":"BGF NEW ENERGY \"A4\" (USD) INC","LU0056508442.USD":"贝莱德世界科技基金A2","LU1978683503.SGD":"Blackrock Sustainable Energy A2 SGD-H","BK4567":"ESG概念","LU0097036916.USD":"贝莱德美国增长A2 USD","BK4585":"ETF&股票定投概念","LU0107464264.USD":"abrdn SICAV I - GLOBAL INNOVATION EQUITY \"A\" (USD) ACC","LU0323239441.USD":"HSBC GIF GLOBAL EQUITY CLIMATE CHANGE \"AC\" ACC","LU1852331112.SGD":"Blackrock World Technology Fund A2 SGD-H","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU2720916845.USD":"BGF GLOBAL UNCONSTRAINED EQUITY \"A2\" (USD) ACC","LU0728928796.USD":"abrdn SICAV I - GLOBAL SMALL&MID-CAP SDG HORIZONS EQUITY \"A\" (USD) ACC","LU0094547139.USD":"abrdn SICAV I - GLOBAL SUSTAINABLE EQUITY FUND \"A\" (USD) ACC","LU2250418816.HKD":"BGF WORLD TECHNOLOGY \"A\" (HKD) ACC","LU1951198990.SGD":"Natixis Thematics AI & Robotics Fund H-R/A SGD-H","IE00B5949003.HKD":"JANUS HENDERSON GLOBAL TECHNOLOGY AND INNOVATION \"A\" (HKD) ACC","LU2063271972.USD":"富兰克林创新领域基金","IE00BN0W2W23.USD":"GUINNESS SUSTAINABLE GLOBAL EQUITY \"C\" (USD) ACC","LU0354030511.USD":"ALLSPRING  U.S. LARGE CAP GROWTH \"I\" (USD) ACC","LU2764263203.CNY":"BGF GLOBAL UNCONSTRAINED EQUITY \"A2\" (CNYHDG) ACC","LU1951200564.SGD":"Natixis Thematics AI & Robotics Fund R/A SGD","LU0302445910.USD":"SCHRODER ISF GLOBAL CLIMATE CHANGE EQUITY \"A\" ACC","LU0124384867.USD":"贝莱德新能源基金A2","IE00BN0W2V16.EUR":"GUINNESS SUSTAINABLE GLOBAL EQUITY \"C\" (EUR) ACC","LU2355687059.USD":"NORDEA 1 GLOBAL IMPACT  \"BP\" (USD) ACC","LU0266013472.USD":"AXA WF - Framlington Longevity Economy A Cap USD","LU2506952337.HKD":"BNP PARIBAS CLIMATE IMPACT \"CRH\" (HKDHDG) ACC","IE00BN0W2T93.GBP":"GUINNESS SUSTAINABLE GLOBAL EQUITY \"C\" (GBP) ACC","BK4588":"碎股","LU1721428347.USD":"BNP PARIBAS CLIMATE IMPACT \"C\" (USD) ACC","LU1861214812.USD":"Blackrock Future of Transport A2 USD","LU1923623000.USD":"Natixis Thematics AI & Robotics Fund R/A USD","LU2087625088.SGD":"ALLSPRING  US ALL CAP GROWTH \"A\" (SGDHDG) ACC","LU0353189680.USD":"富国美国全盘成长基金Cl A Acc","LU2477742899.HKD":"BNP PARIBAS CLIMATE IMPACT \"C\" (HKD) ACC","LU2764262908.HKD":"BGF GLOBAL UNCONSTRAINED EQUITY \"A2\" (HKD) ACC","LU1861219969.SGD":"Blackrock Future of Transport A2 SGD-H","LU2506952410.USD":"BNP PARIBAS CLIMATE IMPACT \"CRH\" (USDHDG) ACC A","LU2125909247.SGD":"Natixis Thematics Meta H-R/A SGD","SG9999000418.SGD":"Aberdeen Standard Global Technology SGD","CDNS":"铿腾电子","LU2275660780.HKD":"SCHRODER ISF GLOBAL CLIMATE CHANGE EQUITY \"A\" (HKD) ACC","LU1923622614.USD":"Natixis Thematics Meta R/A USD","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","BK4023":"应用软件","LU0353189763.USD":"ALLSPRING  US ALL CAP GROWTH FUND \"I\" (USD) ACC","LU2298322129.HKD":"BGF SUSTAINABLE ENERGY \"A2\" (HKDHDG) ACC"},"translate_title":"Cadence Design Systems(CDNS)：分析师乐观情绪重新关注估值和增长潜力","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"CDNS":1.5},"content_text":"Cadence Design Systems (CDNS) has recently caught fresh attention after Citigroup began covering the stock with a Buy, highlighting renewed optimism around the company’s outlook. Analysts are focusing on Cadence’s dominant position in electronic design automation and its durable growth potential. See our latest analysis for Cadence Design Systems. This upbeat analyst sentiment builds on a year of major moves for Cadence Design Systems, including the appointment of Dr. Luc Van den hove to its board. While its 1-year total shareholder return sits just above flat at 0.55%, the company's 3- and 5-year total shareholder returns of 78% and 163% show strong momentum is still very much alive for long-term investors, even as the share price has cooled recently. If Cadence's track record has you rethinking your portfolio mix, now is the perfect time to check out fast growing stocks with high insider ownership. With the stock treading water this year despite strong analyst endorsements and robust long-term fundamentals, the key question is whether Cadence Design Systems is now undervalued or if the market has already priced in its future growth.\nAdvertisementMost Popular Narrative: 19.7% Undervalued At $306.35, Cadence Design Systems trades well below the most-followed fair value estimate of $381.64, pointing to notable upside. This valuation is based on high expectations for growth and profitability over the next several years.  The company is seeing strong demand in its IP business, with a 40% year-over-year growth in Q1 2025 driven by AI, chiplet-based architectures, and new foundry opportunities. This is likely to contribute positively to future revenues.  Read the complete narrative. Curious what is fueling such a bullish outlook? The fair value hinges on bold projections, with rising margins, surging revenues, and a shrinking share count shaping future multiples. The numbers behind this narrative may surprise you. Find out what sets this forecast apart from the crowd. Result: Fair Value of $381.64 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, risks such as US-China tensions or challenges in maintaining key partnerships could quickly alter Cadence's growth outlook and valuation story. Find out about the key risks to this Cadence Design Systems narrative. Another View: What Do the Multiples Say? Looking at valuation from a different angle, Cadence Design Systems trades at a price-to-earnings ratio of 78.6x, which is considerably higher than both its peers (57.9x) and the US Software industry average (29.2x). The fair ratio, based on our analysis, sits at 42.6x. This premium suggests investors may be expecting exceptional growth, but it also raises questions about whether shares are vulnerable to a re-rating if growth wobbles. Could the high multiple signal risk rather than opportunity for buyers at today’s prices? See what the numbers say about this price — find out in our valuation breakdown. NasdaqGS:CDNS PE Ratio as at Nov 2025 Build Your Own Cadence Design Systems Narrative Perhaps you see the numbers differently, or want to dive deeper on your own terms. Why not shape your own perspective from the data? You can easily build your own view in just a few minutes, so get started and Do it your way. A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Cadence Design Systems. Looking for More Compelling Investment Ideas? Don’t just settle for one great company when so many promising opportunities are available across different sectors. Explore what you could be missing with a broader approach today.  Tap into high yield by reviewing these 15 dividend stocks with yields > 3% featuring robust companies offering attractive returns for income-focused investors. Catch the latest surge with these 25 AI penny stocks where innovators in artificial intelligence are reshaping how industries operate and compete for tomorrow’s growth. Stay ahead of the curve by scanning these 82 cryptocurrency and blockchain stocks to find public companies driving momentum in digital assets and blockchain advancements right now.   This article by Simply Wall St is general in nature. We provide commentary based on historical data\n    and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your\n    financial situation. We aim to bring you long-term focused analysis driven by fundamental data.\n    Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.\n    Simply Wall St has no position in any stocks mentioned.New: AI Stock Screener & AlertsOur new AI Stock Screener scans the market every day to uncover opportunities.• Dividend Powerhouses (3%+ Yield)• Undervalued Small Caps with Insider Buying• High growth Tech and AI CompaniesOr build your own from over 50 metrics.Explore Now for FreeHave feedback on this article? Concerned about the content? Get in touch with us directly. 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