September 09, 2025 a 08:39 am
CDNS: Analysts Ratings - Cadence Design Systems, Inc.
Cadence Design Systems, Inc. continues to assert its position as an industry leader in the provision of software and hardware for IC design, partly due to persistent encouragement from analysts. The company benefits from strong growth in markets like 5G and automotive. Current analyst consensus indicates robust buy signals, though some cautionary 'Hold' ratings have emerged.
Historical Stock Grades
September 2025 shows a consistent consensus among analysts with a strong preference for Buy ratings, suggesting confidence in current market performance. The breakdown is as follows:
| Recommendation | Count | Score |
|---|---|---|
| Strong Buy | 4 | |
| Buy | 14 | |
| Hold | 4 | |
| Sell | 1 | |
| Strong Sell | 0 |
Sentiment Development
Examining the monthly trends reveals persistent stability in Buy recommendations despite minor fluctuations in Strong Buy ratings.
- From early 2025, Strong Buy recommendations have slightly decreased.
- Hold ratings have remained relatively stable throughout the period.
- There is a notable consistency in Buy recommendations, demonstrating analysts' confidence in the company.
Percentage Trends
The percentage distribution of ratings provides insight into market sentiment. While Buy ratings consistently dominate, subtle shifts suggest evolving analyst perspectives.
- Strong Buy ratings have gradually decreased from 33% at the start of the year to around 19% by September 2025.
- The proportion of Buy ratings remains strong, capturing over 65% each month.
- Hold recommendations account for approximately 19%, indicating a watchful market stance.
- Stability in Sell ratings reflects market confidence.
Latest Analyst Recommendations
Recent recommendations underscore a hold on existing strategies, with most analysts maintaining their previous ratings, reinforcing confidence in the stock's stability.
| Date | New Recommendation | Last Recommendation | Publisher |
|---|---|---|---|
| 2025-07-29 | Buy | Buy | Loop Capital |
| 2025-07-29 | Overweight | Overweight | Keybanc |
| 2025-07-29 | Outperform | Outperform | Mizuho |
| 2025-07-29 | Neutral | Neutral | Rosenblatt |
| 2025-07-29 | Buy | Buy | Stifel |
Analyst Recommendations with Change of Opinion
There have been recent opinion changes reflecting a nuanced market perception with both downgrades and upgrades noted.
| Date | New Recommendation | Last Recommendation | Publisher |
|---|---|---|---|
| 2025-07-29 | Neutral | Overweight | Piper Sandler |
| 2025-04-24 | Overweight | Neutral | JP Morgan |
| 2024-08-06 | Overweight | Neutral | Piper Sandler |
| 2024-02-14 | Overweight | Equal Weight | Morgan Stanley |
| 2024-02-13 | Neutral | Buy | Rosenblatt |
Interpretation
The overall market sentiment towards Cadence Design Systems remains broadly positive. While the prevalence of Buy ratings suggests optimism, the slight increase in Hold ratings may indicate some analysts' cautious outlook. Nonetheless, consistency in recent recommendations points to stable market confidence. Observed downgrades highlight areas of strategic reassessment, emphasizing a balanced analysis.
Conclusion
Cadence Design Systems, Inc. stands strong with its diverse market presence and robust demand across various sectors. Analysts largely endorse the stock, evident from high Buy ratings. However, a trend of slightly declining Strong Buy suggestions suggests prudent caution. The static status of Hold and Sell ratings further underscores the stock's stability and reliability as a long-term investment. Overall, while cautious optimism prevails, strategic vigilance is advised, given potential market fluctuations.