Synopsys double downgraded to Underperform at BofA on Intel, China overhangs

As previously reported, BofA analyst Vivek Arya double downgraded Synopsys (SNPS) to Underperform from Buy with a price target of $525, down from $625, citing the persistent uncertainty of foundry potential at top customer Intel (INTC), which historically has made up about 12% of sales, as well as higher initial integration costs for the Ansys acquisition. The firm also cites the “surprising” restructuring required in its core IP business given “muted” FY26 growth and unspecified change in business model, including potentially more competition with ARM (ARM). Uncertainty over FY26 and FY27, benefits of Ansys acquisition, and near-term IP misses at Intel and China could “remain a persistent overhang on the stock,” the analyst argues.

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