Mizuho cuts Synopsys target, sees buying opportunity on selloff

Mizuho lowered the firm’s price target on Synopsys (SNPS) to $600 from $700 and keeps an Outperform rating on the shares. The company’s fiscal Q3 results were mixed as strength in design automation was offset by weakness in the intellectual property segment, the analyst tells investors in a research note. The firm says that while fiscal 2026 is a transition year for Synopsys with the Ansys acquisition and IP roadmap reset, it remains confident in management’s ability to sustain growth in simulation while focusing on profitability and debt reduction. The stock’s 36% selloff yesterday is an overreaction and presents a buying opportunity, contends Mizuho.