Synopsys’ (SNPS) Buy Rating Reiterated at Needham & Company LLC

Needham & Company LLC restated their buy rating on shares of Synopsys (NASDAQ:SNPS) in a research report released on Thursday,Benzinga reports. The firm currently has a $580.00 price target on the semiconductor company’s stock.

Several other equities research analysts have also commented on the company. Berenberg Bank set a $633.00 target price on Synopsys in a research report on Wednesday, May 27th. Zacks Research downgraded shares of Synopsys from a “strong-buy” rating to a “hold” rating in a research report on Friday, August 21st. Stifel Nicolaus lifted their price objective on shares of Synopsys from $550.00 to $600.00 and gave the company a “buy” rating in a research note on Thursday, May 28th. Rosenblatt Securities reiterated a “buy” rating and set a $575.00 target price on shares of Synopsys in a research report on Tuesday, August 25th. Finally, KeyCorp reissued an “overweight” rating on shares of Synopsys in a research note on Wednesday, August 19th. Twelve research analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus target price of $561.28.

Synopsys Price Performance

Shares of NASDAQ SNPS opened at $442.61 on Thursday. The company has a market capitalization of $84.82 billion, a PE ratio of 78.20, a P/E/G ratio of 2.60 and a beta of 1.23. The company has a quick ratio of 1.32, a current ratio of 1.34 and a debt-to-equity ratio of 0.29. Synopsys has a twelve month low of $366.00 and a twelve month high of $615.79. The firm has a fifty day simple moving average of $416.64 and a 200 day simple moving average of $440.13.

Synopsys (NASDAQ:SNPS) last issued its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 EPS for the quarter, beating analysts’ consensus estimates of $3.67 by $0.24. Synopsys had a net margin of 11.43% and a return on equity of 6.24%. The business had revenue of $2.48 billion for the quarter, compared to analysts’ expectations of $2.44 billion. During the same quarter in the prior year, the firm posted $3.39 earnings per share. The business’s quarterly revenue was up 42.4% compared to the same quarter last year. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. On average, sell-side analysts forecast that Synopsys will post 11.03 EPS for the current year.

Insider Activity

In other news, CEO Sassine Ghazi sold 14,603 shares of Synopsys stock in a transaction on Monday, June 15th. The stock was sold at an average price of $458.96, for a total transaction of $6,702,192.88. Following the sale, the chief executive officer directly owned 75,020 shares in the company, valued at $34,431,179.20. The trade was a 16.29% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Shelagh Glaser sold 3,394 shares of Synopsys stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $450.02, for a total transaction of $1,527,367.88. Following the completion of the sale, the chief financial officer directly owned 14,358 shares in the company, valued at approximately $6,461,387.16. This represents a 19.12% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.56% of the company’s stock.

Hedge Funds Weigh In On Synopsys

A number of institutional investors and hedge funds have recently added to or reduced their stakes in SNPS. Sankala Group LLC bought a new stake in Synopsys during the 4th quarter worth approximately $25,000. Elevation Wealth Partners LLC boosted its holdings in Synopsys by 96.4% in the 2nd quarter. Elevation Wealth Partners LLC now owns 55 shares of the semiconductor company’s stock valued at $25,000 after purchasing an additional 27 shares during the period. Osbon Capital Management LLC bought a new position in Synopsys in the 2nd quarter valued at $25,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Synopsys during the 4th quarter valued at $28,000. Finally, IMG Wealth Management Inc. purchased a new position in shares of Synopsys during the 2nd quarter valued at $28,000. Institutional investors own 85.47% of the company’s stock.

More Synopsys News

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: Strong Q3 performance: Synopsys reported adjusted earnings of $3.91 per share versus expectations of $3.67, while revenue reached $2.48 billion, up 42.4% year over year and ahead of estimates. Strength in electronic design automation (EDA) and the Ansys acquisition supported the results. SNPS Q3 Earnings Beat Estimates on EDA and Ansys Strength
• Positive Sentiment: Higher outlook and AI momentum: Management raised fiscal 2026 guidance, citing accelerating EDA demand, recovering Design IP activity, interest in agentic AI and additional opportunities from integrating Ansys. Fiscal 2026 EPS guidance is $15.04–$15.10, with revenue guidance reportedly raised to approximately $9.72 billion. SNPS Q3 Earnings Call Highlights EDA Acceleration, Outlook Raised
• Positive Sentiment: Analyst and strategic support: Goldman Sachs, Benchmark and Needham reaffirmed Buy ratings, with price targets ranging from $570 to $600. Elliott Investment Management also reportedly built a multibillion-dollar position, betting Synopsys can narrow its discount to peers. Elliott Bets Multibillion-Dollar Position on Closing Synopsys’ Peer Discount
• Neutral Sentiment: Commentators view Synopsys as a key supplier to major technology companies, including Nvidia, and believe Ansys has strengthened its competitive moat; however, the acquisition’s full contribution depends on successful integration and future synergies. SNPS in Right Place, Right Time?
• Negative Sentiment: Valuation and peer concerns: Following the earnings rally, investors are refocusing on valuation, with Synopsys trading at a high earnings multiple. A comparison with PDF Solutions also highlighted stronger growth and margin improvement at the smaller rival, potentially limiting near-term enthusiasm for SNPS. SNPS vs. PDFS: Which Semiconductor Software Stock Has an Edge?

About Synopsys

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.