Synopsys (NASDAQ:SNPS) Stock Gets Price Target Increase from Rosenblatt Securities

Key Points

• Rosenblatt Securities raised Synopsys’ price target to $620 from $575 and maintained a “buy” rating, implying 42.55% potential upside. Analysts overall rate the stock “Moderate Buy,” with an average target of $577.39.
• Synopsys reported quarterly EPS of $3.91 versus the $3.67 consensus estimate, while revenue reached $2.48 billion and increased 42.4% year over year.
• The stock gained 4.8%, though insiders sold shares worth nearly $38 million over the last quarter. Institutional investors own 85.47% of the company, and Synopsys trades at a relatively high P/E ratio of 76.84.

Synopsys (NASDAQ:SNPS - Get Free Report) had its price target increased by Rosenblatt Securities from $575.00 to $620.00 in a research note issued to investors on Thursday, Benzinga reports. The firm currently has a "buy" rating on the semiconductor company's stock. Rosenblatt Securities' price objective would indicate a potential upside of 42.55% from the company's current price.

A number of other research firms have also recently commented on SNPS. Mizuho reduced their target price on Synopsys from $600.00 to $550.00 and set an "outperform" rating on the stock in a research note on Thursday, August 27th. Roth Capital raised Synopsys to a "buy" rating in a report on Friday, September 25th. KeyCorp reiterated an "overweight" rating and set a $605.00 price target (up from $600.00) on shares of Synopsys in a research report on Thursday. UBS Group set a $570.00 price objective on shares of Synopsys in a research note on Thursday, August 27th. Finally, Sanford C. Bernstein initiated coverage on shares of Synopsys in a research report on Friday, September 25th. They set an "outperform" rating for the company. Sixteen research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $577.39.

Synopsys Stock Up 4.8%

SNPS stock opened at $434.94 on Thursday. The company's 50 day moving average is $403.35 and its 200 day moving average is $435.48. The stock has a market cap 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. Synopsys has a 1-year low of $362.55 and a 1-year high of $539.48.

Synopsys (NASDAQ:SNPS - Get Free Report) last announced its earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.67 by $0.24. The business had revenue of $2.48 billion during the quarter, compared to analyst estimates of $2.44 billion. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. Synopsys's revenue for the quarter was up 42.4% on a year-over-year basis. During the same period in the previous year, the business posted $3.39 earnings per share. 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 10.97 EPS for the current fiscal year.

Insider Activity

In other Synopsys news, CEO Sassine Ghazi sold 14,604 shares of the firm's stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $374.88, for a total transaction of $5,474,747.52. Following the completion of the transaction, the chief executive officer 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 ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Aart de Geus sold 25,000 shares of Synopsys stock in a transaction on Monday, August 31st. The shares were sold at an average price of $441.76, for a total value of $11,044,000.00. Following the transaction, the insider owned 120,421 shares of the company's stock, valued at $53,197,180.96. The trade was a 17.19% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 89,245 shares of company stock valued at $37,992,919. 0.56% of the stock is owned by company insiders.

Hedge Funds Weigh In On Synopsys

Several hedge funds and other institutional investors have recently added to or reduced their stakes in SNPS. Sequoia Financial Advisors LLC lifted its holdings in shares of Synopsys by 19.0% during the second quarter. Sequoia Financial Advisors LLC now owns 14,866 shares of the semiconductor company's stock valued at $6,631,000 after purchasing an additional 2,377 shares in the last quarter. Gemmer Asset Management LLC purchased a new stake in Synopsys during the 2nd quarter valued at $224,000. National Pension Service grew its holdings in shares of Synopsys by 1.9% in the second quarter. National Pension Service now owns 470,136 shares of the semiconductor company's stock worth $209,714,000 after acquiring an additional 8,748 shares during the period. Engineers Gate Manager LP grew its holdings in shares of Synopsys by 172.7% in the second quarter. Engineers Gate Manager LP now owns 16,365 shares of the semiconductor company's stock worth $7,300,000 after acquiring an additional 10,363 shares during the period. Finally, Pinnacle Wealth Management Advisory Group LLC increased its position in Synopsys by 30.4% during the second quarter. Pinnacle Wealth Management Advisory Group LLC now owns 1,236 shares of the semiconductor company's stock valued at $551,000 after acquiring an additional 288 shares during the last quarter. 85.47% of the stock is owned by institutional investors.

Key Synopsys News

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.

Synopsys Company Profile

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.

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