Synopsys (NASDAQ:SNPS) Given "Buy" Rating at Needham & Company LLC

Key Points

• Needham & Company LLC reaffirmed a “buy” rating on Synopsys and set a $580 price target, implying about 10.3% upside from the prior close.
• Other analysts remain mixed: several firms raised or maintained targets, but the stock’s overall consensus rating is “Hold” with a consensus target price of $546.13.
• Synopsys recently posted a beat on earnings and revenue, with quarterly EPS of $3.35 and revenue of $2.28 billion, and it also raised full-year guidance amid strong AI-related demand.

Synopsys (NASDAQ:SNPS - Get Free Report)'s stock had its "buy" rating reaffirmed by analysts at Needham & Company LLC in a research report issued to clients and investors on Thursday,Benzinga reports. They presently have a $580.00 price target on the semiconductor company's stock. Needham & Company LLC's price target indicates a potential upside of 10.28% from the company's previous close.

SNPS has been the subject of a number of other reports. Rosenblatt Securities lifted their target price on Synopsys from $530.00 to $575.00 and gave the company a "buy" rating in a report on Tuesday. Piper Sandler lifted their target price on Synopsys from $430.00 to $450.00 and gave the company a "neutral" rating in a report on Thursday. Berenberg Bank set a $633.00 target price on Synopsys in a report on Wednesday. The Goldman Sachs Group set a $600.00 target price on Synopsys and gave the company a "buy" rating in a report on Wednesday, February 25th. Finally, Wells Fargo & Company reiterated a "positive" rating on shares of Synopsys in a report on Thursday. Nine research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $546.13.

Synopsys Stock Performance

Shares of Synopsys stock opened at $525.92 on Thursday. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.36 and a quick ratio of 1.26. The stock has a market capitalization of $100.75 billion, a price-to-earnings ratio of 81.66, a price-to-earnings-growth ratio of 4.38 and a beta of 1.25. The business has a 50-day moving average of $457.56 and a 200 day moving average of $453.69. Synopsys has a 12 month low of $376.18 and a 12 month high of $651.73.

Synopsys (NASDAQ:SNPS - Get Free Report) last issued its quarterly earnings results on Wednesday, May 27th. The semiconductor company reported $3.35 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $3.15 by $0.20. The company had revenue of $2.28 billion for 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 business's revenue for the quarter was up 41.9% compared to the same quarter last year. During the same period in the prior year, the firm earned $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. As a group, sell-side analysts forecast that Synopsys will post 10.28 earnings per share for the current year.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Vanguard Group Inc. lifted its holdings in Synopsys by 1.6% during the 4th quarter. Vanguard Group Inc. now owns 18,464,862 shares of the semiconductor company's stock worth $8,673,315,000 after buying an additional 283,677 shares during the last quarter. State Street Corp lifted its holdings in Synopsys by 0.3% during the 4th quarter. State Street Corp now owns 8,788,890 shares of the semiconductor company's stock worth $4,128,317,000 after buying an additional 28,532 shares during the last quarter. Morgan Stanley lifted its holdings in Synopsys by 2.5% during the 4th quarter. Morgan Stanley now owns 4,573,980 shares of the semiconductor company's stock worth $2,148,491,000 after buying an additional 109,917 shares during the last quarter. Geode Capital Management LLC lifted its holdings in Synopsys by 1.3% during the 4th quarter. Geode Capital Management LLC now owns 4,310,846 shares of the semiconductor company's stock worth $2,017,256,000 after buying an additional 54,329 shares during the last quarter. Finally, Victory Capital Management Inc. lifted its holdings in Synopsys by 238.8% during the 3rd quarter. Victory Capital Management Inc. now owns 2,824,349 shares of the semiconductor company's stock worth $1,393,506,000 after buying an additional 1,990,608 shares during the last quarter. 85.47% of the stock is currently owned by hedge funds and other institutional investors.

More Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Synopsys beat Q2 estimates with revenue of $2.276 billion and non-GAAP EPS of $3.35, while also raising its full-year revenue and EPS outlook on strong demand for AI-driven chip design software. Reuters article
• Positive Sentiment: The company said backlog remains large and highlighted momentum from AI infrastructure spending and successful progress on Ansys integration, which supports confidence in future growth. Yahoo Finance article
• Positive Sentiment: Synopsys also reached a governance agreement with activist investor Elliott, adding Jesse Cohn to the board, a move that may increase pressure for margin improvement and capital discipline. WSJ article
• Neutral Sentiment: Despite the beat-and-raise report, several market reports noted the stock slipped anyway, suggesting investors may be taking profits or waiting for more clarity on valuation and merger integration before rewarding the results. Barron’s article
• Negative Sentiment: The market’s muted reaction implies concern that much of the AI growth and guidance strength may already be priced into SNPS after a sharp run-up, limiting upside despite the solid quarter. Yahoo Finance article

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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