Cadence Design Systems rated Buy with $460 target, 21% upside on AI-driven growth and strong EPS outlook.

An analyst rates Cadence Design Systems as a Buy with a $460 price target, suggesting a 21% upside from the current $379 price. The bullish outlook is driven by growth in AI integration within electronic design automation, semiconductor IP related to memory and interconnect, and steady earnings per share growth supported by buybacks and acquisitions. The analyst projects EPS to rise from $7.90 to $10.07 by 2028, valuing the stock using a 5-year forward P/E multiple. Risks include valuation sensitivity due to the stock's premium pricing, but strong revenue growth and AI demand support the positive rating.