Breaking Down Synopsys: 9 Analysts Share Their Views

In the latest quarter, 9 analysts provided ratings for Synopsys SNPS, showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $595.89, a high estimate of $660.00, and a low estimate of $520.00. A decline of 5.16% from the prior average price target is evident in the current average.

Exploring Analyst Ratings: An In-Depth Overview

The analysis of recent analyst actions sheds light on the perception of Synopsys by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Synopsys. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Synopsys compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Synopsys's stock. This examination reveals shifts in analysts' expectations over time.

To gain a panoramic view of Synopsys's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Synopsys analyst ratings.

About Synopsys

Synopsys is a provider of electronic design automation software and intellectual property products. EDA software automates and aids in the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Synopsys' comprehensive portfolio is benefiting from a convergence of semiconductor companies moving up the stack of technologies toward systems-like companies, and systems companies moving down-stack toward in-house chip design. The resulting expansion in EDA customers alongside secular digitalization of various end markets benefits EDA vendors like Synopsys.

Synopsys's Economic Impact: An Analysis

Market Capitalization Analysis: Reflecting a smaller scale, the company's market capitalization is positioned below industry averages. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Challenges: Synopsys's revenue growth over 3M faced difficulties. As of 31 January, 2025, the company experienced a decline of approximately -3.68%. This indicates a decrease in top-line earnings. When compared to others in the Information Technology sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Net Margin: Synopsys's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 20.32% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Synopsys's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 3.23%, the company may face hurdles in achieving optimal financial returns.

Return on Assets (ROA): Synopsys's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 2.26%, the company showcases efficient use of assets and strong financial health.

Debt Management: Synopsys's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.07.

Analyst Ratings: Simplified

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.