Robert W. Baird Maintains Buy Rating for Synopsys with $670 Price Target

Robert W. Baird maintains a Buy rating for Synopsys (SNPS) with a price target of $670.00. Joseph Vruwink, the analyst, has a 12.4% average return and 65.82% success rate. The stock has a Strong Buy analyst consensus rating with a $645.13 average price target. Insider sentiment is negative with 51 insiders selling shares over the past quarter.

Synopsys (SNPS) closed the most recent trading day at $625.33, rising by 1.2% from the previous session. The stock's performance exceeded the S&P 500's daily loss of 0.01%, while the Dow lost 0.08% and the Nasdaq added 0.03%. Over the past month, Synopsys' shares gained 5.67%, outpacing the Computer and Technology sector's gain of 4.93% and the S&P 500's gain of 3.47% [1].

Market participants are closely following Synopsys' upcoming earnings release, scheduled for September 9, 2025. Analysts anticipate an EPS of $3.84, marking a 11.95% rise compared to the same quarter of the previous year. The consensus revenue estimate is $1.77 billion, indicating a 15.9% growth compared to the corresponding quarter of the prior year. For the full year, the Zacks Consensus Estimates project earnings of $15.09 per share and a revenue of $6.77 billion, demonstrating changes of +14.32% and +8.03%, respectively, from the preceding year [1].

Analysts have shown mixed sentiment towards Synopsys. Robert W. Baird maintains a Buy rating with a price target of $670.00, while Joseph Vruwink, the analyst, has a 12.4% average return and 65.82% success rate. The stock has a Strong Buy analyst consensus rating with a $645.13 average price target. However, insider sentiment is negative, with 51 insiders selling shares over the past quarter [2].

Synopsys operates in the Computer - Software industry, which has a Zacks Industry Rank of 64, placing it in the top 26% of all 250+ industries. The industry's average PEG ratio is 2.05, while Synopsys has a PEG ratio of 2.93. This indicates that Synopsys is relatively overvalued compared to its industry peers [1].

Recent market events, such as the halt in China sales due to U.S. export curbs, have impacted Synopsys' short-term revenue and market share. However, the company's focus on software tools for semiconductor design and validation positions it well for long-term growth. The partnership between Rivian and Volkswagen also highlights the growing demand for software solutions in electric vehicle infrastructure [4].

In conclusion, Synopsys' stock has shown strong performance recently, with positive analyst ratings and earnings growth expectations. However, the company faces challenges such as U.S. export restrictions and negative insider sentiment. Investors should closely monitor Synopsys' earnings release and other market developments to make informed decisions.

References:
[1] https://finance.yahoo.com/news/synopsys-snps-rises-market-takes-214503662.html
[2] https://www.marketscreener.com/news/rothschild-co-redburn-adjusts-price-target-on-synopsys-to-700-from-645-maintains-buy-rating-ce7c51d2da8ef123
[4] https://www.ainvest.com/news/stock-analysis-synopsys-outlook-technical-weakness-persists-mixed-analyst-sentiment-2508/