Key Highlights

● Cadence Design Systems shares fell 1.5% to close at $319.51 on October 16.

● The consensus 12-month price target is $406.24, implying about 27.1% upside.

● Analysts are split 23 Buy, 2 Hold, and 0 Sell on the stock.

● Targets range from $300 to $470 across 26 analysts.

Cadence Design Systems (NASDAQ:CDNS) closed at $319.51 on Friday October 16, 2026, with the shares listed on Nasdaq and a member of the Nasdaq-100. According to market data, the consensus mean 12-month price target is $406.24, which is 27.1% above the latest close (+27.1%). The shares slipped 1.50% on the day, and the company is due to report third-quarter results on October 26, 2026.

Price targets are analyst forecasts rather than guarantees.

What Is the Latest Analyst Price Target?

The data shows a consensus mean target of $406.24 and a median of $415.44, with the highest target at $470.00 and the lowest at $300.00. The figures are drawn from 26 analysts, with the data dated October 7, 2026. Measured against the latest close, the mean target implies +27.1% and the median implies +30.0%.

If the consensus proves accurate, the shares would trade near the mean target over the next twelve months. However, the spread between the high and low targets shows that analysts hold differing views, and targets are routinely revised as new information emerges.

What Are Analysts Saying?

The consensus rating is Strong Buy, with a split of 23 Buy, 2 Hold, 0 Sell. Deutsche Bank raised its target from $400 to $420 with a Buy rating on 7 October, Mizuho Securities reiterated Buy on 24 September, FBN Securities initiated at Buy with a $375 target on 11 September, Stifel Nicolaus maintained Buy with a $432 target on 28 August and Bank of America Securities reiterated Buy with a $420 target on 20 August. The source data was last updated on 7 October, so it predates the latest close.

Analysts' views can change quickly, and individual broker actions should be read in the context of the wider consensus rather than in isolation.

What Could Help the Stock Reach the Price Target?

Cadence has recently expanded its partnership with TSMC on certified tool solutions and UALink IP for advanced processes, and added a new agent to its ChipStack AI Super Agent. Goldman Sachs has also named the company among semiconductor-related stocks it sees as set for an earnings boost. If demand for chip design software continues to grow with AI-related chip development, the consensus target suggests meaningful upside.

None of this guarantees that the stock will reach the target, and outcomes will depend on company performance and market conditions.

What Could Prevent the Stock Reaching the Target?

The lowest target of $300 is only 6.1% below the latest close, but the shares remain well beneath most targets, which may reflect valuation or sector sentiment. Because the consensus data predates the latest session, targets may have since moved. Semiconductor-cycle slowdowns, export restrictions or competition in electronic design automation could pressure results.

What Should Investors Watch Next?

The 26 October results and webcast are the next catalyst, including revenue, backlog and guidance. Investors may also watch for further target changes, updates on AI-driven design tools and progress on foundry partnerships. Next earnings date: October 26, 2026.

Upside Tied to Execution

The consensus target suggests +27.1% from the latest close of $319.51, but the figure is a forecast and not a certainty.