Rosenblatt downgrades Synopsys on weaker than expected results

Rosenblatt analyst Blair Abernethy downgraded Synopsys (SNPS) to Neutral from Buy with a price target of $605, down from $650. The company’s fiscal Q3 results miss expectations largely due to a weaker intellectual property business, the analyst tells investors in a research note. The firm says management blamed the Q3 and outlook miss on several issues, including export restrictions in China, delays at a major foundry, and IP product decisions that did not yield as expected. Rosenblatt cut estimates through fiscal 2027, saying Synopsys IP business pivot will take several quarters to complete and creates increased uncertainty.