Cadence Design price target raised to $235 from $225 at KeyBanc

KeyBanc raised the firm’s price target on Cadence Design to $235 from $225 and keeps an Overweight rating on the shares after the company posted better Q1 results on strength in hardware. However, the magnitude of the 2023 revenue guidance raise was more in line with consensus levels, as the company awaits more visibility on the second half of the year hardware demand, which KeyBanc continues to believe is conservative. With the stock up +30% year-to-date pre-print, aftermarket trading suggests the stock may take a breather post the print. That said, the firm continues to view Cadence as a core holding, and would use any pullback as a buying opportunity.