Cadence Design Systems stock hit with Wall Street Zen Hold rating

Wall Street Zen cut its rating on Cadence Design Systems from Buy to Hold on Thursday, November 5, 2026, according to MarketBeat. The report adds a more cautious voice to a still-positive analyst picture rather than signaling a broad consensus reversal.

Rating mix remains broadly constructive

MarketBeat said one analyst rates the shares Strong Buy, 18 assign Buy ratings and three assign Hold ratings. Its aggregated view remains Moderate Buy, with an average target price of 410.05 US dollars. Deutsche Bank recently reiterated Buy with a 420 US dollar target, while Rosenblatt Securities also maintained Buy and a 420 US dollar target, according to the report.

The rating change comes after Cadence reported third-quarter revenue of 1.63 billion US dollars, up 22 percent from the year-earlier quarter. Earnings of 2.11 US dollars per share exceeded the 2.05 US dollar consensus cited by MarketBeat. The company has also raised its 2026 outlook and highlighted demand for electronic-design-automation software, semiconductor intellectual property and system-design tools.

Execution matters after strong growth

For investors, the downgrade puts more emphasis on whether Cadence can convert AI-related demand and its record backlog into durable profit growth. The report cited a price-to-earnings ratio of 51.88 and a 200-day moving average of 327.40 US dollars for the US listing. Those figures underline the market's high expectations, although the ratios and listing currency differ from the euro quote in Berlin.

Cadence operates across electronic-design automation, computational software, hardware and semiconductor intellectual property. Its products support chip design, verification, emulation, prototyping and system analysis, giving the company exposure to the expansion of artificial-intelligence infrastructure while leaving execution, customer spending and valuation as key risks.

Cadence Design Systems stock traded at 290.05 euros on Lang & Schwarz at 1:42 p.m. CET on Thursday, November 5, 2026, 1.33 percent below the Xetra close of Wednesday, November 4. Investors can follow the real-time quote of Cadence Design Systems stock.

US equity markets and technology shares remain the main market context for Cadence as investors weigh strong AI demand against elevated valuation expectations. See Current market reports.

More news and analyses on Cadence Design Systems stock are available on the topic page.