Loop Capital Bullish on Cadence (CDNS) Amid China Licensing Delays

Cadence Design Systems, Inc. (NASDAQ:CDNS) ranks among the best magic formula stocks to invest in. On July 14, Loop Capital maintained its Buy rating on Cadence Design Systems, Inc. (NASDAQ:CDNS) and raised its price target from $340 to $370. The firm stated that Cadence’s second-quarter 2025 results and third-quarter outlook will probably be distorted by the month-long US export prohibition for electronic design automation (EDA) headed for China.

Loop Capital Bullish on Cadence (CDNS) Amid China Licensing Delays

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Although the company’s overall FY25 revenue projection is expected to remain unchanged, Loop Capital estimates that roughly 4-5% of Cadence’s second-quarter total revenue will move out of the quarter and be redirected into the second half of fiscal year 2025.

In contrast to management’s early May messaging, Loop Capital believes Cadence’s licensing activity and business pipeline are still robust despite the export control issues, with the generally improved chip cycle further boosting licensing activity.

Cadence Design Systems, Inc. (NASDAQ:CDNS) is a leading player in electronic systems design. Utilizing its Intelligent System Design approach, the company provides a full range of hardware, IP, and computational software solutions.

While we acknowledge the potential of CDNS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CDNS and that has 100x upside potential, check out our report about this cheapest AI stock.

Read More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.