On September 25, Synopsys rose 3.12% in regular trading, trading at approximately $425.21/share, with turnover of $440 million. The move was primarily driven by BNP Paribas upgrading the stock from underperform to neutral, setting a price target of $420.
The upgrade marks the latest in a series of positive analyst actions. Morgan Stanley previously upgraded Synopsys to overweight with a $500 target, while Baird raised it to outperform with a $560 target in late August, which triggered a nearly 13% single-day rally. The consensus average rating stands at buy with a mean price target of approximately $553.90, well above current levels.
Fundamentally, Synopsys delivered a strong fiscal Q3 with revenue of $2.48 billion, up 42% year-over-year, and adjusted EPS of $3.91, both exceeding estimates. The company raised full-year guidance to revenue of $9.69–$9.74 billion and adjusted EPS of $15.04–$15.10. Management highlighted accelerating double-digit EDA growth and emerging Ansys synergies, while dismissing concerns that AI large models could disrupt the EDA industry, asserting AI would instead drive greater software demand.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
Comments