UPDATE: DA Davidson Raises Target to $38 on Synopsis

DA Davidson raises its price target on Buy-rated Synopsis (NASDAQ: SNPS) to $38 from $34 as broad-based strength in core EDA market drives solid results for Q4 and guidance.

DA Davidson notes, "Overall business remains brisk. Business activity across the EDA industry remains extremely strong and SNPS continues to benefit from increased chip complexity, particularly at the 28nm and 20nm nodes, as customers require a larger set of advanced design tools to efficiently design leading edge products. The IP business continues to be one of the key revenue drivers as skyrocketing chip development costs are encouraging industry adoption of outsourced IP."

SNPS closed at $30.63 a share yesterday.