Added to YB: 2026-10-01
Pitch date: 2026-09-27
CDNS [bullish]
Cadence Design Systems, Inc.
+4.76%
current return
Author Info
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Company Info
Cadence Design Systems, Inc. develops computational, AI-driven software, hardware, and silicon intellectual property products and solutions.
Market Cap
$89.3B
Pitch Price
$319.00
Price Target
405.00 (+21%)
Dividend
N/A
EV/EBITDA
40.01
P/E
64.45
EV/Sales
15.48
Sector
Software
Category
growth
Cadence Design Systems Inc (CDNS): AI and semiconductor design
CDNS: Cadence’s EDA duopoly position, custom-silicon demand and agentic AI tools — which management says increase consumption of EDA engines rather than cannibalize licenses — support growth, while Q2 revenue rose 24.2% and full-year guidance increased to 19%. The $405 weighted target implies 27% upside, but a 3.52 PEG, 2.0% free-cash-flow yield and no decisive fundamental edge over peers leave the premium valuation insufficiently justified; acquisition debt also warrants monitoring.
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