Synopsys price target raised to $715 from $540 at Morgan Stanley

Morgan Stanley raised the firm’s price target on Synopsys (SNPS) to $715 from $540 and keeps an Overweight rating on the shares after the Ansys (ANSS) merger close. The firm sees the combined entity’s EPS being 16%-17% ahead of Synopsys on a standalone basis, before considering any revenue synergies, but adds that the firm’s sense is that the company will cut costs heavily in year one-two, with a focus on restructuring. Q3 results are due at close of business on September 9, notes the analyst, who is on watch for new pro forma details.