Synopsys price target lowered to $625 from $660 at Rosenblatt

Rosenblatt analyst Blair Abernethy lowered the firm’s price target on Synopsys (SNPS) to $625 from $660 and keeps a Buy rating on the shares after Synopsys reported inline Q2 results and reiterated its FY25 growth forecast. EDA stocks dropped about 10% on Wednesday afternoon on reports that the U.S. government was going to bar them from selling design tools to China, but on the company’s call Synopsys management noted that it had not received any indication, at that point, of further restrictions to its business in China, although the company has seen further demand weakness in China, the analyst noted. The firm is marginally adjusting its FY25 forecast and taking a more cautious view on FY26 growth due to the weakness in China, the analyst added.