Synopsys’ (SNPS) Buy Rating Reiterated at Rosenblatt Securities

Rosenblatt Securities reissued their buy rating on shares of Synopsys (NASDAQ:SNPS) in a research report sent to investors on Tuesday, MarketBeat reports. They currently have a $575.00 price target on the semiconductor company’s stock.

Several other equities analysts also recently weighed in on the company. Weiss Ratings reiterated a “hold (c-)” rating on shares of Synopsys in a research report on Monday, June 8th. Piper Sandler upgraded Synopsys from a “neutral” rating to an “overweight” rating and upped their price target for the stock from $450.00 to $550.00 in a research report on Tuesday, June 23rd. Morgan Stanley decreased their price objective on Synopsys from $525.00 to $500.00 and set an “equal weight” rating on the stock in a research note on Wednesday, August 19th. Robert W. Baird set a $558.00 price objective on Synopsys in a research report on Thursday, May 28th. Finally, Zacks Research downgraded Synopsys from a “strong-buy” rating to a “hold” rating in a research note on Friday, August 21st. Twelve research analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $561.28.

Synopsys Stock Up 13.4%

SNPS opened at $464.89 on Tuesday. The firm’s 50 day simple moving average is $416.90 and its two-hundred day simple moving average is $440.11. The company has a market capitalization of $89.02 billion, a PE ratio of 82.14, a PEG ratio of 2.41 and a beta of 1.23. Synopsys has a 1-year low of $366.00 and a 1-year high of $615.79. The company has a current ratio of 1.43, a quick ratio of 1.32 and a debt-to-equity ratio of 0.33.

Synopsys (NASDAQ:SNPS) last issued its quarterly earnings data on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.67 by $0.24. The firm had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.44 billion. Synopsys had a net margin of 11.43% and a return on equity of 6.31%. The company’s revenue for the quarter was up 42.4% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $3.39 EPS. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. As a group, equities analysts forecast that Synopsys will post 10.64 EPS for the current year.

Insider Activity

In related news, CEO Sassine Ghazi sold 14,603 shares of the business’s stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $458.96, for a total value of $6,702,192.88. Following the sale, the chief executive officer directly owned 75,020 shares in the company, valued at approximately $34,431,179.20. The trade was a 16.29% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Shelagh Glaser sold 3,394 shares of the stock in a transaction that occurred on Friday, June 12th. The shares were sold at an average price of $450.02, for a total value of $1,527,367.88. Following the transaction, the chief financial officer directly owned 14,358 shares of the company’s stock, valued at approximately $6,461,387.16. The trade was a 19.12% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.56% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. bought a new stake in Synopsys in the second quarter worth $7,228,099,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Synopsys during the second quarter valued at $747,400,000. Norges Bank purchased a new position in shares of Synopsys in the 4th quarter worth $730,197,000. Bank of New York Mellon Corp purchased a new position in shares of Synopsys in the 2nd quarter worth $692,074,000. Finally, State Street Corp increased its holdings in shares of Synopsys by 20.6% in the 3rd quarter. State Street Corp now owns 8,760,358 shares of the semiconductor company’s stock worth $4,322,273,000 after buying an additional 1,493,912 shares during the last quarter. 85.47% of the stock is currently owned by institutional investors.

Synopsys News Roundup

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Quarterly results exceeded expectations. Synopsys reported revenue of $2.477 billion, up 42.4% year over year, while non-GAAP EPS of $3.91 surpassed the $3.67 consensus estimate. Design Automation was particularly strong, and Ansys-related contributions supported growth. Synopsys Posts Financial Results for Third Quarter Fiscal Year 2026
• Positive Sentiment: Synopsys raised its fiscal 2026 outlook. Management lifted full-year revenue expectations to approximately $9.715 billion at the midpoint and non-GAAP EPS guidance to $15.07. Fourth-quarter EPS guidance of $4.10-$4.16 also came in above the $3.78 analyst consensus, reinforcing expectations for continued operating momentum. Synopsys raises annual forecasts on AI-driven chip design software demand
• Positive Sentiment: AI is strengthening the long-term growth story. The company said rising chip complexity and investments in AI infrastructure are accelerating EDA demand. Management also highlighted a rebound in Design IP, potential growth from integrating Ansys and customer productivity gains from AI-enabled engineering tools. SNPS Q3 Earnings Call Highlights EDA Acceleration, Outlook Raised
• Positive Sentiment: Analyst support remains favorable. Goldman Sachs, Benchmark and Needham reaffirmed Buy ratings with price targets ranging from $570 to $600, implying substantial upside based on the cited reference price. Elliott Investment Management also reportedly built a multibillion-dollar position, betting Synopsys can narrow its valuation discount to peers. Synopsys Earns Buy Rating as Strong Execution and Higher 2026 Guidance Support $600 Price Target
• Neutral Sentiment: Analyst reactions were not unanimous following the results. While several firms remain bullish, some investors may view the raised outlook as largely reflected in the stock’s valuation, contributing to a mixed near-term assessment. Analysts show mixed reactions after Synopsys’ Q3 results, outlook
• Negative Sentiment: Shares initially faced pressure after the earnings release despite the beat and higher guidance, likely reflecting profit-taking and concerns about elevated valuation. The subsequent rally indicates investors ultimately prioritized the strong results and improved growth outlook. Synopsys slides even as it boosts full-year guidance on back of strong Q3 results

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.