Synopsys: Keybanc Raises PT to $660 from $610, Maintains Overweight Rating

Synopsys: Keybanc Raises PT to $660 from $610, Maintains Overweight Rating

Keybanc Securities has revised its price target for Synopsys (SNPS) to $660 from $610, while maintaining an Overweight rating on the stock. The new target reflects the investment bank's optimism about Synopsys' earnings and revenue growth prospects [1].

Synopsys reported a 3.65% decline in its stock price due to U.S. export restrictions on semiconductor design software, which halted China sales and threatened near-term revenue [2]. Despite this setback, the company is expected to report earnings of $3.84 per share, marking a 11.95% rise compared to the same quarter of the previous year [1]. The consensus estimate for revenue is $1.77 billion, indicating a 15.9% escalation compared to the year-ago quarter [1].

Keybanc's revised price target and Overweight rating suggest that the investment bank believes Synopsys' earnings and revenue growth will outpace expectations. The company is currently trading at a Forward P/E ratio of 39.88, which is higher than the industry average of 26.35, indicating that the market may be pricing in higher growth expectations [1].

Synopsys' Zacks Rank is currently #4 (Sell), but the company's strong earnings and revenue growth prospects could potentially lead to an improvement in its ranking. The Zacks Rank system incorporates estimate changes and offers a practical rating system that has a remarkable track record of success [1].

Investors should monitor Synopsys' earnings release on September 9, 2025, to assess the company's performance and the potential impact on its stock price. Keybanc's revised price target and Overweight rating provide a positive outlook for Synopsys' stock, but investors should consider the specific analyst ratings and the overall market conditions when making investment decisions.

References:
[1] https://finance.yahoo.com/news/synopsys-snps-declines-more-market-214504523.html
[2] https://www.ainvest.com/news/crowdstrike-holdings-synopsys-pure-storage-receive-analyst-ratings-2508/