-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We increase our price target by $3 to $390, 41x our 2027 EPS estimate, just above CDNS's three-year average (~39x) as agentic AI upside outweighs concerns over rising competition and export controls. We lower our 2026 EPS view by $0.29 to $7.95 but increase our 2027 view by $0.08 to $9.51. Following the Hexagon D&E acquisition, CDNS looks satisfied with its systems design portfolio, allowing it to focus more on product development to build its lead in agentic tooling, where its Super Agent offerings now cover a broad set of use cases. We expect rising traction for agentic EDA to structurally improve growth for the Core EDA segment (which encouragingly posted +18% in Q1 following +8% in Q4), while also supporting continued strength in IP (+22%), with an improving contribution over the next several quarters. Upfront sales remain elevated (21% of trailing 12-month sales, +300 bps Y/Y), but visibility is supported by an $8.0B backlog (+25% Y/Y) that keeps setting new records, helping ease volatility concerns.