Rosenblatt Securities Forecasts Strong Price Appreciation for Synopsys (NASDAQ:SNPS) Stock

Synopsys (NASDAQ:SNPS) had its price target hoisted by stock analysts at Rosenblatt Securities from $575.00 to $620.00 in a report released on Thursday, Benzinga reports. The firm currently has a “buy” rating on the semiconductor company’s stock. Rosenblatt Securities’ target price would suggest a potential upside of 42.55% from the stock’s previous close.

SNPS has been the topic of several other reports. Sanford C. Bernstein assumed coverage on Synopsys in a research report on Friday, September 25th. They set an “outperform” rating on the stock. HSBC cut Synopsys from a “buy” rating to a “reduce” rating in a research report on Friday, September 25th. UBS Group set a $570.00 price objective on Synopsys in a research report on Thursday, August 27th. Roth Capital upgraded Synopsys to a “buy” rating in a research note on Friday, September 25th. Finally, Wells Fargo & Company reissued an “overweight” rating on shares of Synopsys in a report on Thursday. Sixteen analysts have rated the stock with a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $577.39.

Synopsys Stock Performance

Shares of NASDAQ SNPS opened at $434.94 on Thursday. Synopsys has a 12-month low of $362.55 and a 12-month high of $539.48. The firm has a market capitalization of $83.35 billion, a price-to-earnings ratio of 76.84, a price-to-earnings-growth ratio of 2.27 and a beta of 1.23. The company has a current ratio of 1.34, a quick ratio of 1.24 and a debt-to-equity ratio of 0.29. The firm has a 50 day moving average of $403.35 and a 200 day moving average of $435.48.

Synopsys (NASDAQ:SNPS) last released its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, topping the consensus estimate of $3.67 by $0.24. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The business had revenue of $2.48 billion for the quarter, compared to the consensus estimate of $2.44 billion. During the same period last year, the firm earned $3.39 earnings per share. The company’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. On average, research analysts anticipate that Synopsys will post 10.97 earnings per share for the current year.

Insider Transactions at Synopsys

In other news, insider Aart de Geus sold 24,641 shares of the business’s stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $419.44, for a total value of $10,335,421.04. Following the transaction, the insider directly owned 120,443 shares in the company, valued at $50,518,611.92. The trade was a 16.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Sassine Ghazi sold 14,604 shares of the company’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $374.88, for a total value of $5,474,747.52. Following the completion of the transaction, the chief executive officer directly owned 76,865 shares of the company’s stock, valued at approximately $28,815,151.20. This trade represents a 15.97% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 89,245 shares of company stock worth $37,992,919. Insiders own 0.56% of the company’s stock.

Institutional Investors Weigh In On Synopsys

Institutional investors have recently added to or reduced their stakes in the stock. Mitsubishi UFJ Asset Management Co. Ltd. purchased a new position in Synopsys during the 2nd quarter valued at approximately $747,400,000. Man Group plc purchased a new stake in shares of Synopsys during the 2nd quarter worth approximately $55,900,000. Bank of America Corp DE purchased a new stake in shares of Synopsys during the 2nd quarter worth approximately $539,986,000. Nykredit A S bought a new position in shares of Synopsys during the 2nd quarter valued at approximately $23,158,000. Finally, Czech National Bank boosted its position in shares of Synopsys by 4.6% during the 2nd quarter. Czech National Bank now owns 54,526 shares of the semiconductor company’s stock valued at $24,322,000 after acquiring an additional 2,421 shares during the last quarter. 85.47% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Raised long-term outlook: Synopsys forecast fiscal 2027 earnings of $19.04–$19.12 per share and revenue of $11.1–$11.2 billion, above consensus estimates of $16.78 and $10.8 billion, respectively. Management also outlined a roughly 15% growth target and expanding non-GAAP operating margins, reflecting confidence in demand for semiconductor design and engineering software. Synopsys Investor Day growth strategy
• Positive Sentiment: Large Amazon agreement: Amazon Web Services signed a multiyear custom-silicon intellectual-property agreement worth more than $1 billion. The deal is expected to support Synopsys’ silicon IP business through a license-plus-royalty model, while addressing demand for custom chips used in cloud and AI infrastructure. Synopsys AWS licensing agreement
• Positive Sentiment: OpenAI partnership adds an AI growth avenue: Synopsys and OpenAI will jointly develop and commercialize “GPT-Synopsys,” a specialized model for semiconductor design. OpenAI will license Synopsys’ EDA tools, and the companies will share revenue, potentially accelerating adoption of AI-powered chip-design workflows. Synopsys and OpenAI partnership
• Positive Sentiment: Capital return: Investor Day coverage indicated a new $1 billion share-repurchase authorization, which could support per-share earnings and signal management’s confidence in future cash generation. Synopsys growth target, buyback and OpenAI deal
• Neutral Sentiment: Synopsys’ valuation remains demanding, with the stock trading at a high earnings multiple. The improved outlook and AI-related opportunities strengthen the growth case, but execution, customer adoption and the ability to convert agreements into recurring revenue remain important risks.

About Synopsys

Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and software tools used to design, verify, and manufacture advanced electronic systems. Its solutions support the development of semiconductors, systems-on-chip, and electronic products across the design cycle, from initial specification and architecture through testing and production.

The company’s offerings include digital and custom integrated-circuit design tools, simulation and verification software, physical design and signoff products, and semiconductor IP such as processor cores, interface technologies, and foundational components.