Analyst Vivek Arya from Bank of America Securities reiterated a Buy rating on Synopsys (SNPS – Research Report) and keeping the price target at $630.00.
Vivek Arya has given his Buy rating due to a combination of factors including Synopsys’s strong financial performance and promising growth outlook. The company exceeded expectations in its first quarter of fiscal year 2025 with earnings per share surpassing consensus estimates, and revenue slightly above guidance despite challenges in the Chinese market. Synopsys management has reaffirmed a positive sales outlook for FY25, projecting significant year-over-year growth in both revenue and earnings per share.
Additionally, Arya highlights the potential of Synopsys’s AI-enabled tools, which offer substantial design optimizations and could lead to increased research and development spending in electronic design automation and intellectual property. The company’s IP business is expected to grow significantly, driven by demand from hyperscale customers for customized solutions. Despite potential risks such as the execution of the Ansys acquisition and economic deceleration in China, Arya maintains a positive outlook on Synopsys’s core trends and long-term prospects.
In another report released on February 24, Rosenblatt Securities also maintained a Buy rating on the stock with a $660.00 price target.
SNPS’s price has also changed moderately for the past six months – from $525.910 to $470.460, which is a -10.54% drop .