Synopsys (SNPS) Soars 13% on 4 Analysts’ “Buy” Calls

Core Insights - Synopsys, Inc. (NASDAQ:SNPS) experienced a significant stock price increase of 12.98% to close at $438.10, driven by "buy" recommendations from four investment firms and a rebound from a five-month low [1][3]. Stock Performance - The stock's rise followed a two-day losing streak, indicating positive investor sentiment [1]. - Despite the positive movement, several firms lowered their price targets for Synopsys while maintaining a "buy" recommendation [2]. Analyst Recommendations - Mizuho set the highest target at $600, down from $700, while Deutsche Bank reduced its forecast to $580 from $600 [3]. - HSBC lowered its estimate to $520 from $645, and Morgan Stanley made the most significant cut, slashing its target to $510 from $715 [4]. - The revised price targets suggest a potential upside of 16% to 37% from the latest closing price [4]. Financial Performance - In Q3 of fiscal year 2025, Synopsys reported a 40.56% decline in net income to $242.5 million, despite a 13% increase in total revenues to $1.7 billion [5]. - The CEO highlighted the acquisition of Ansys as a transformative move, expanding the company's portfolio and customer base [6]. - The company acknowledged underperformance in its IP business and is taking steps to enhance its competitive advantage [7].