Zhi Tong Cai Jing·2025-09-11 02:29Core Viewpoint - Synopsys (SNPS.US) stock price plummeted after third-quarter performance and guidance fell short of expectations, leading to downgrades from several Wall Street analysts [1][2] Group 1: Analyst Ratings and Price Targets - Baird downgraded Synopsys from "Outperform" to "Neutral" and reduced the target price from $670 to $535, citing significant changes in the design intellectual property (IP) outlook, including restrictions in China and changes in customer behavior [1] - Morgan Stanley maintained an "Overweight" rating with a target price of $715, noting strong performance in core electronic design automation (EDA) despite unexpected weakness in the design IP business [1] - Needham kept a "Buy" rating but lowered the target price from $660 to $550, highlighting mixed results post-Ansys acquisition and questioning whether the IP issues are structural or temporary [2] - Wells Fargo reiterated a "Hold" rating while reducing the target price from $630 to $550 [2] Group 2: Financial Performance and Guidance - Synopsys completed the $35 billion acquisition of Ansys in July, but the subsequent financial report showed mixed results, particularly poor performance in the IP business, which has historically influenced stock volatility [2] - Analysts indicated that the fourth-quarter revenue guidance exceeded market expectations, primarily due to the inclusion of Ansys, which offset the weakness in the IP business [1] - Concerns were raised about the potential challenges in financial reporting following the Ansys acquisition, with analysts noting that the company's performance is significantly below historical standards [2] Group 3: Market and Business Outlook - Analysts expressed surprise at the ongoing challenges from the Chinese market and Intel, but remain optimistic that these headwinds will eventually subside [2] - The transition of the IP business model towards "larger IP" (such as subsystems and chips) and its impact on profitability is a key focus for analysts moving forward [2]