Morgan Stanley analyst Lee Simpson maintained a Buy rating on Synopsys today and set a price target of $510.00.
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Lee Simpson has given his Buy rating due to a combination of factors that suggest potential growth for Synopsys. Despite recent volatility and challenges, including a notable miss in the Design IP segment, there is optimism about the company’s future performance. The anticipated integration of Ansys is expected to contribute significantly to sales, with projections of around $3 billion in Ansys-related revenue for the next year.
Furthermore, the core EDA business is forecasted to show strength, supported by robust performance from products like Zebu and HAPS. While the company faces headwinds in China and the loss of Intel as a client, the overall sales for FY26 are expected to reach approximately $9.6-9.7 billion, supporting an EPS of $14-15. These factors, combined with the potential for recovery in share price, underpin Lee Simpson’s positive outlook and Buy rating for Synopsys.
In another report released on November 25, Citi also initiated coverage with a Buy rating on the stock with a $580.00 price target.
Based on the recent corporate insider activity of 58 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SNPS in relation to earlier this year.