Wells Fargo & Company Cuts Synopsys (NASDAQ:SNPS) Price Target to $450.00

Key Points

• Wells Fargo cut its price target on Synopsys from $500 to $450 and kept an "equal weight" rating, implying roughly a 5.5% upside from the prior close.
• Synopsys beat Q1 estimates with $3.77 EPS (vs. $3.56) and $2.41B revenue (up ~65% YoY), but shares fell after management flagged a muted near‑term revenue outlook and China export risks.
• Analyst sentiment is mixed—nine Buys, seven Holds and one Sell, producing an average "Hold" rating and a mean price target of $535.67—while investors remain concerned about Ansys integration costs, a GAAP loss and about $13.5B of debt.

Synopsys (NASDAQ:SNPS - Get Free Report) had its price target reduced by analysts at Wells Fargo & Company from $500.00 to $450.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The firm presently has an "equal weight" rating on the semiconductor company's stock. Wells Fargo & Company's price objective would suggest a potential upside of 5.53% from the company's previous close.

SNPS has been the topic of a number of other research reports. JPMorgan Chase & Co. boosted their price target on shares of Synopsys from $600.00 to $650.00 and gave the company an "overweight" rating in a report on Thursday, December 11th. Morgan Stanley reaffirmed an "overweight" rating on shares of Synopsys in a research report on Wednesday. Bank of America raised Synopsys from an "underperform" rating to a "neutral" rating and reduced their price target for the stock from $525.00 to $500.00 in a research report on Monday, December 8th. Rosenblatt Securities decreased their price objective on shares of Synopsys from $560.00 to $530.00 and set a "buy" rating for the company in a report on Thursday. Finally, Citigroup began coverage on Synopsys in a research report on Monday, November 24th. They issued a "buy" rating and a $580.00 price target on the stock. Nine research analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $535.67.

Synopsys Price Performance

Shares of NASDAQ:SNPS traded down $22.74 during trading hours on Thursday, hitting $426.43. 1,386,175 shares of the company's stock traded hands, compared to its average volume of 2,164,043. The company's fifty day simple moving average is $472.85 and its two-hundred day simple moving average is $479.02. The company has a market cap of $81.69 billion, a price-to-earnings ratio of 53.39, a price-to-earnings-growth ratio of 3.67 and a beta of 1.12. The company has a debt-to-equity ratio of 0.48, a quick ratio of 1.52 and a current ratio of 1.62. Synopsys has a 52 week low of $365.74 and a 52 week high of $651.73.

Synopsys (NASDAQ:SNPS - Get Free Report) last released its earnings results on Wednesday, February 25th. The semiconductor company reported $3.77 EPS for the quarter, beating the consensus estimate of $3.56 by $0.21. The business had revenue of $2.41 billion during the quarter, compared to analyst estimates of $2.39 billion. Synopsys had a net margin of 18.89% and a return on equity of 7.89%. The business's quarterly revenue was up 65.6% on a year-over-year basis. During the same period in the prior year, the business earned $3.03 earnings per share. Synopsys has set its FY 2026 guidance at 14.380-14.460 EPS and its Q2 2026 guidance at 3.110-3.170 EPS. As a group, equities analysts anticipate that Synopsys will post 10.64 EPS for the current fiscal year.

Insider Buying and Selling

In other Synopsys news, CFO Shelagh Glaser sold 3,657 shares of the company's stock in a transaction on Friday, December 19th. The shares were sold at an average price of $460.77, for a total transaction of $1,685,035.89. Following the completion of the sale, the chief financial officer owned 17,842 shares in the company, valued at approximately $8,221,058.34. The trade was a 17.01% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Janet Lee sold 250 shares of the firm's stock in a transaction dated Monday, January 12th. The stock was sold at an average price of $530.00, for a total value of $132,500.00. Following the transaction, the insider owned 11,959 shares in the company, valued at approximately $6,338,270. This trade represents a 2.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last three months, insiders have sold 4,157 shares of company stock valued at $1,945,036. 0.62% of the stock is currently owned by insiders.

Institutional Trading of Synopsys

A number of institutional investors have recently made changes to their positions in SNPS. Nolet Wealth Management LLC acquired a new position in Synopsys in the fourth quarter valued at about $228,000. Phillip James Consulting Co. acquired a new stake in shares of Synopsys during the 4th quarter valued at $36,000. MV Capital Management Inc. acquired a new stake in shares of Synopsys during the fourth quarter valued at about $73,000. Sunbelt Securities Inc. grew its holdings in Synopsys by 1,250.0% during the 4th quarter. Sunbelt Securities Inc. now owns 243 shares of the semiconductor company's stock worth $114,000 after acquiring an additional 225 shares during the last quarter. Finally, Cambient Family Office LLC bought a new stake in shares of Synopsys in the fourth quarter worth $3,294,000. Institutional investors own 85.47% of the company's stock.

Trending Headlines about Synopsys

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Q1 beat and strong top‑line growth — Synopsys reported $3.77 non‑GAAP EPS and $2.41B revenue (up ~65% YoY), beating estimates and hitting the high end of guidance, driven by Design Automation and Ansys contribution; board approved a $2.0B buyback. Synopsys Q1 Earnings Surpass Estimates Press Release
• Positive Sentiment: FY26 EPS guide appears strong/possibly conservative — several analysts say the company’s FY26 EPS framework may be conservative given current demand, supporting longer‑term upside. Guidance Likely Conservative
• Neutral Sentiment: Wall Street consensus remains bullish but mixed — the average brokerage view is a Buy, yet some firms trimmed models/targets after the print; that keeps analyst guidance influential but not uniform. Analyst Coverage
• Negative Sentiment: Guidance and regional risks disappointed traders — commentary and forecasts flagged a muted near‑term revenue outlook (China export restrictions cited), which investors interpreted as a signal that fiscal Q2 growth could be constrained. Reuters: Muted Quarter
• Negative Sentiment: Market reacted poorly despite the beat — shares dipped after the print as investors focused on the softer forward revenue tone and model changes; some firms cut price targets (Piper Sandler to $430, Rosenblatt trimmed its target). 24/7 Wall St. market reaction Benzinga: Analyst Cuts
• Negative Sentiment: Integration, costs and leverage concerns persist — investors flagged Ansys-related integration charges, a GAAP loss in the quarter, workforce reductions and a heavy debt load (~$13.5B), which raise execution and balance‑sheet risk during the near term. QuiverQuant: Integration & outlook 24/7 Wall St.: Debt Concerns

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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