Synopsys price target lowered to $550 from $660 at Needham

Needham analyst Charles Shi lowered the firm’s price target on Synopsys (SNPS) to $550 from $660 and keeps a Buy rating on the shares. The company reported a rather mixed quarter with weakness in IP – the historical idiosyncratic driver of the stock’s performance – contributing to major downside, and investors are rightfully asking if the IP issues are structural or if they are temporary, the analyst tells investors in a research note. Needham still notes however that while it was surprised by the fact that China and Intel (INTC) still bite even today, it also expects these two headwinds will eventually pass.