Cadence Design price target raised to $355 from $350 at KeyBanc

KeyBanc raised the firm’s price target on Cadence Design (CDNS) to $355 from $350 and keeps an Overweight rating on the shares following the Design Automation Conference, or DAC, the EDA industry’s flagship user conference, where the firm had the chance to interact and attend sessions with executives and IR at Cadence and Synopsys (SNPS), as well as Siemens EDA, Dassault, Altair, and dozens of customers/partners. The general tone of the conference was upbeat, but to KeyBanc’s positive surprise, the buzz and focus around 3D-IC was much larger than anticipated, and feedback around initial customer demand for refreshed hardware offerings at Cadence and Siemens EDA appears to be strong. Net, the firm leaves DAC incrementally more positive on opportunities in EDA.