Cadence Design price target raised to $270 from $265 at KeyBanc

KeyBanc analyst Jason Celino raised the firm’s price target on Cadence Design to $270 from $265 and keeps an Overweight rating on the shares. The firm notes Cadence reported a more in-line Q2, and raised full-year revenue guidance by $15M versus prior consensus, both of which were below its more optimistic preview. KeyBanc believes hardware demand trends/orders remain quite strong, but elongated delivery lead times are limiting upside. Overall, the firm continues to view Cadence as a core holding, with substantial opportunities from AI and 3DIC, and would use any perceived weakness from an “in-line quarter” as a buying opportunity.