Synopsys (NASDAQ:SNPS) Given “Buy” Rating at Needham & Company LLC

Synopsys (NASDAQ:SNPS)‘s stock had its “buy” rating reiterated by research analysts at Needham & Company LLC in a report released on Thursday,Benzinga reports. They presently have a $580.00 target price on the semiconductor company’s stock. Needham & Company LLC’s price objective points to a potential upside of 10.28% from the company’s current price.

Other analysts also recently issued reports about the company. Piper Sandler boosted their target price on Synopsys from $430.00 to $450.00 and gave the company a “neutral” rating in a report on Thursday. Morgan Stanley restated an “equal weight” rating and issued a $480.00 price target (down from $550.00) on shares of Synopsys in a research report on Wednesday, February 25th. The Goldman Sachs Group set a $600.00 price target on Synopsys and gave the company a “buy” rating in a research report on Wednesday, February 25th. Wells Fargo & Company restated a “positive” rating on shares of Synopsys in a research report on Thursday. Finally, HSBC cut Synopsys from a “buy” rating to a “hold” rating and set a $455.00 price target on the stock. in a research report on Friday, February 20th. Nine equities research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $546.13.

Synopsys Stock Down 1.6%

Synopsys stock opened at $525.92 on Thursday. Synopsys has a fifty-two week low of $376.18 and a fifty-two week high of $651.73. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.26 and a current ratio of 1.36. The company has a market capitalization of $100.75 billion, a P/E ratio of 81.66, a PEG ratio of 4.38 and a beta of 1.25. The stock has a 50-day simple moving average of $457.56 and a 200-day simple moving average of $453.69.

Synopsys (NASDAQ:SNPS) last posted its earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share for the quarter, beating the consensus estimate of $3.15 by $0.20. Synopsys had a return on equity of 6.83% and a net margin of 13.76%.The business had revenue of $2.28 billion during the quarter, compared to the consensus estimate of $2.25 billion. During the same period in the previous year, the business earned $3.67 EPS. The business’s quarterly revenue was up 41.9% on a year-over-year basis. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. Equities research analysts expect that Synopsys will post 10.28 earnings per share for the current year.

Hedge Funds Weigh In On Synopsys

Several institutional investors and hedge funds have recently added to or reduced their stakes in SNPS. Sankala Group LLC acquired a new position in Synopsys during the 4th quarter worth approximately $25,000. Thurston Springer Miller Herd & Titak Inc. acquired a new position in Synopsys during the 4th quarter worth approximately $28,000. Caitong International Asset Management Co. Ltd acquired a new position in Synopsys during the 4th quarter worth approximately $28,000. IMG Wealth Management Inc. acquired a new position in Synopsys during the 1st quarter worth approximately $30,000. Finally, Atlas Capital Advisors Inc. acquired a new position in Synopsys during the 4th quarter worth approximately $32,000. Institutional investors and hedge funds own 85.47% of the company’s stock.

Synopsys News Summary

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys beat Q2 estimates with revenue of $2.276 billion and non-GAAP EPS of $3.35, while also raising its full-year revenue and EPS outlook on strong demand for AI-driven chip design software. Reuters article
• Positive Sentiment: The company said backlog remains large and highlighted momentum from AI infrastructure spending and successful progress on Ansys integration, which supports confidence in future growth. Yahoo Finance article
• Positive Sentiment: Synopsys also reached a governance agreement with activist investor Elliott, adding Jesse Cohn to the board, a move that may increase pressure for margin improvement and capital discipline. WSJ article
• Neutral Sentiment: Despite the beat-and-raise report, several market reports noted the stock slipped anyway, suggesting investors may be taking profits or waiting for more clarity on valuation and merger integration before rewarding the results. Barron’s article
• Negative Sentiment: The market’s muted reaction implies concern that much of the AI growth and guidance strength may already be priced into SNPS after a sharp run-up, limiting upside despite the solid quarter. Yahoo Finance article

About Synopsys

Synopsys, Inc is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and manufacture integrated circuits and complex systems-on-chip (SoCs). Its product portfolio spans tools and technologies for front‑end design and synthesis, simulation and verification, physical implementation and signoff, and design-for-manufacturability, enabling chip designers to move from architecture through tape‑out.

In addition to core EDA offerings, Synopsys supplies a broad set of semiconductor IP building blocks — such as interface, memory and analog/mixed-signal cores — that customers integrate into SoCs to accelerate development.