Bank of America Forecasts Strong Price Appreciation for Synopsys (NASDAQ:SNPS) Stock

Key Points

• Bank of America raised its price target on Synopsys to $600 from $515 and kept a buy rating, implying about 14% upside from the current share price.
• Synopsys recently posted stronger-than-expected quarterly results, with EPS of $3.35 and revenue of $2.28 billion, and it also raised full-year guidance on continued AI and chip-design demand.
• Broader analyst sentiment remains positive, with several firms issuing or maintaining bullish targets, and MarketBeat shows Synopsys has an average rating of Moderate Buy with an average target price of $558.50.

Synopsys (NASDAQ:SNPS - Get Free Report) had its target price upped by investment analysts at Bank of America from $515.00 to $600.00 in a research note issued on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the semiconductor company's stock. Bank of America's price target would indicate a potential upside of 14.09% from the stock's current price.

A number of other equities research analysts have also recently weighed in on the stock. Wells Fargo & Company restated a "positive" rating and issued a $535.00 price objective on shares of Synopsys in a report on Thursday. Berenberg Bank set a $633.00 target price on shares of Synopsys in a report on Wednesday. Robert W. Baird set a $558.00 target price on shares of Synopsys in a research report on Thursday. Morgan Stanley set a $525.00 target price on shares of Synopsys in a research note on Thursday. Finally, The Goldman Sachs Group set a $600.00 price target on Synopsys and gave the stock a "buy" rating in a research note on Wednesday, February 25th. Ten research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Synopsys currently has an average rating of "Moderate Buy" and an average target price of $558.50.

Synopsys Stock Performance

Shares of SNPS stock opened at $525.92 on Thursday. The firm's 50 day moving average is $457.56 and its 200 day moving average is $453.69. The company has a current ratio of 1.36, a quick ratio of 1.26 and a debt-to-equity ratio of 0.33. The stock has a market capitalization of $100.75 billion, a P/E ratio of 81.66, a PEG ratio of 4.38 and a beta of 1.25. Synopsys has a 12 month low of $376.18 and a 12 month high of $651.73.

Synopsys (NASDAQ:SNPS - Get Free Report) last posted its quarterly earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.15 by $0.20. The business had revenue of $2.28 billion during the quarter, compared to analyst estimates of $2.25 billion. Synopsys had a net margin of 13.76% and a return on equity of 6.83%. The company's revenue was up 41.9% on a year-over-year basis. During the same period in the prior year, the business posted $3.67 earnings per share. Synopsys has set its FY 2026 guidance at 14.720-14.800 EPS and its Q3 2026 guidance at 3.630-3.690 EPS. On average, sell-side analysts anticipate that Synopsys will post 10.28 earnings per share for the current year.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of SNPS. Sankala Group LLC purchased a new stake in shares of Synopsys in the 4th quarter valued at $25,000. Thurston Springer Miller Herd & Titak Inc. acquired a new position in shares of Synopsys during the fourth quarter valued at approximately $28,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Synopsys in the fourth quarter valued at approximately $28,000. IMG Wealth Management Inc. acquired a new position in Synopsys during the first quarter worth about $30,000. Finally, Atlas Capital Advisors Inc. purchased a new position in Synopsys during the fourth quarter worth approximately $32,000. 85.47% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys reported stronger-than-expected Q2 results, with EPS of $3.35 and revenue of $2.28 billion, both ahead of estimates, and lifted full-year guidance on continued demand for AI and semiconductor design software. Reuters: Synopsys raises annual forecast on demand for AI chip design software
• Positive Sentiment: Needham reaffirmed its Buy rating and set a $580 price target, signaling analyst confidence in further upside from current levels. Benzinga: Needham reiterates Buy on Synopsys
• Positive Sentiment: Synopsys also reached a cooperation agreement with Elliott Investment Management, adding Jesse Cohn to its board, which may support governance and strategic execution as it integrates Ansys. Reuters: Synopsys reaches settlement with Elliott
• Neutral Sentiment: Piper Sandler raised its price target to $450 but kept a Neutral rating, reflecting a more cautious view of near-term upside despite the better results. Benzinga: Piper Sandler raises target on Synopsys
• Negative Sentiment: The stock sold off after earnings because investors may be focusing on valuation, merger/integration complexity around Ansys, and whether the strong report is already priced in. Yahoo Finance: Nvidia Partner Synopsys Posts Beat-And-Raise Report. But Stock Drops.

Synopsys Company Profile

Synopsys, Inc is a leading provider of electronic design automation (EDA) software and semiconductor intellectual property (IP) used to design, verify and manufacture integrated circuits and complex systems-on-chip (SoCs). Its product portfolio spans tools and technologies for front‑end design and synthesis, simulation and verification, physical implementation and signoff, and design-for-manufacturability, enabling chip designers to move from architecture through tape‑out.

In addition to core EDA offerings, Synopsys supplies a broad set of semiconductor IP building blocks — such as interface, memory and analog/mixed-signal cores — that customers integrate into SoCs to accelerate development.

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