Synopsys’ (SNPS) “Buy” Rating Reiterated at Benchmark

Benchmark reissued their buy rating on shares of Synopsys (NASDAQ:SNPS) in a report published on Thursday morning,Benzinga reports. The brokerage currently has a $570.00 target price on the semiconductor company’s stock.

A number of other equities research analysts have also commented on SNPS. Berenberg Bank set a $633.00 price objective on shares of Synopsys in a report on Wednesday, May 27th. BNP Paribas Exane lifted their price target on Synopsys from $425.00 to $450.00 and gave the company an “underperform” rating in a research note on Thursday, May 28th. Needham & Company LLC restated a “buy” rating and issued a $580.00 price target on shares of Synopsys in a report on Thursday. Piper Sandler raised Synopsys from a “neutral” rating to an “overweight” rating and upped their price objective for the stock from $450.00 to $550.00 in a research report on Tuesday, June 23rd. Finally, Wells Fargo & Company decreased their price target on shares of Synopsys from $535.00 to $450.00 and set an “equal weight” rating for the company in a research note on Tuesday, August 11th. Twelve research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $561.28.

Synopsys Price Performance

Shares of NASDAQ:SNPS opened at $442.61 on Thursday. Synopsys has a 1-year low of $366.00 and a 1-year high of $615.79. The firm has a market capitalization of $84.82 billion, a PE ratio of 78.20, a PEG ratio of 2.60 and a beta of 1.23. The business’s 50 day moving average is $416.64 and its 200-day moving average is $440.13. The company has a current ratio of 1.34, a quick ratio of 1.32 and a debt-to-equity ratio of 0.29.

Synopsys (NASDAQ:SNPS) last released 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. Synopsys had a return on equity of 6.24% and a net margin of 11.43%.The business had revenue of $2.48 billion for the quarter, compared to analysts’ expectations of $2.44 billion. During the same period in the previous year, the business posted $3.39 earnings per share. Synopsys’s quarterly revenue was up 42.4% on a year-over-year basis. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. Sell-side analysts predict that Synopsys will post 11.03 earnings per share for the current year.

Insider Activity at Synopsys

In related news, CEO Sassine Ghazi sold 14,603 shares of the stock in a transaction on 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 owned 75,020 shares in the company, valued at approximately $34,431,179.20. This represents a 16.29% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 Synopsys stock in a transaction on Friday, June 12th. The stock was sold at an average price of $450.02, for a total transaction 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. This trade represents a 19.12% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 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

Institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. acquired a new stake in Synopsys during the 2nd quarter worth approximately $7,228,099,000. Mitsubishi UFJ Asset Management Co. Ltd. bought a new stake in Synopsys in the 2nd quarter valued at $747,400,000. Norges Bank acquired a new position in Synopsys in the 4th quarter valued at $730,197,000. Bank of New York Mellon Corp bought a new position in Synopsys during the 2nd quarter worth $692,074,000. Finally, State Street Corp increased its position in Synopsys by 20.6% during 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 period. Institutional investors and hedge funds own 85.47% of the company’s stock.

Key Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Strong Q3 performance: Synopsys reported adjusted earnings of $3.91 per share versus expectations of $3.67, while revenue reached $2.48 billion, up 42.4% year over year and ahead of estimates. Strength in electronic design automation (EDA) and the Ansys acquisition supported the results. SNPS Q3 Earnings Beat Estimates on EDA and Ansys Strength
• Positive Sentiment: Higher outlook and AI momentum: Management raised fiscal 2026 guidance, citing accelerating EDA demand, recovering Design IP activity, interest in agentic AI and additional opportunities from integrating Ansys. Fiscal 2026 EPS guidance is $15.04–$15.10, with revenue guidance reportedly raised to approximately $9.72 billion. SNPS Q3 Earnings Call Highlights EDA Acceleration, Outlook Raised
• Positive Sentiment: Analyst and strategic support: Goldman Sachs, Benchmark and Needham reaffirmed Buy ratings, with price targets ranging from $570 to $600. Elliott Investment Management also reportedly built a multibillion-dollar position, betting Synopsys can narrow its discount to peers. Elliott Bets Multibillion-Dollar Position on Closing Synopsys’ Peer Discount
• Neutral Sentiment: Commentators view Synopsys as a key supplier to major technology companies, including Nvidia, and believe Ansys has strengthened its competitive moat; however, the acquisition’s full contribution depends on successful integration and future synergies. SNPS in Right Place, Right Time?
• Negative Sentiment: Valuation and peer concerns: Following the earnings rally, investors are refocusing on valuation, with Synopsys trading at a high earnings multiple. A comparison with PDF Solutions also highlighted stronger growth and margin improvement at the smaller rival, potentially limiting near-term enthusiasm for SNPS. SNPS vs. PDFS: Which Semiconductor Software Stock Has an Edge?

Synopsys Company Profile

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.