Top Wall Street Forecasters Revamp Synopsys Price Expectations Ahead Of Q4 Earnings

Synopsys, Inc. (SNPS), a leading provider of electronic design automation (EDA) software, has seen its stock price expectations revised by top Wall Street analysts ahead of its fourth-quarter earnings release. The company's strong financial performance, strategic shifts, and growth prospects have led analysts to increase their price targets, reflecting their confidence in the company's long-term growth potential.



In the fourth quarter of fiscal year 2024, Synopsys reported record quarterly revenue of $1.636 billion, up approximately 11% year over year (YoY), and record full-year 2024 revenue of $6.127 billion, up approximately 15% YoY. The company also achieved a two-percentage-point hike in annual operating margins, reaching 37% in the Design Automation segment. These impressive results have contributed to analysts' increased price targets.



Several strategic developments have also influenced analysts' price revisions. Synopsys' divestiture of its Software Integrity business and focus on AI-backed cloud solutions have been well-received by analysts. Additionally, the upcoming acquisition of Ansys, expected to close in the first half of 2025, signals a decisive expansion for Synopsys, further boosting analysts' confidence in the company's growth prospects.



Top Wall Street analysts have revised their price targets for Synopsys stock, reflecting their confidence in the company's long-term growth prospects. Rosenblatt analyst Blair Abernethy maintained a Buy rating with a price target of $660 on Feb. 25, 2025. Morgan Stanley analyst Lee Simpson maintained an Overweight rating and cut the price target from $625 to $590 on Feb. 24, 2025. Baird analyst Joe Vruwink maintained an Outperform rating and slashed the price target from $644 to $630 on Dec. 5, 2024. Berenberg analyst Nay Soe Naing initiated coverage on the stock with a Buy rating and a price target of $660 on Oct. 15, 2024. JP Morgan analyst Harlan Sur maintained an Overweight rating and boosted the price target from $655 to $685 on Aug. 22, 2024.



These price target revisions and ratings from top Wall Street analysts indicate their confidence in Synopsys' long-term growth prospects. Their assessments are based on the company's strong financial performance, strategic shifts, and the potential of its AI-backed cloud solutions and semiconductor intellectual property (IP) portfolio. As Synopsys continues to execute on its growth strategy, investors can expect the company to deliver strong financial results and create long-term value for shareholders.