Synopsys Positioned for Growth: AI and Hardware Innovations Drive Buy Rating

Synopsys (SNPS – Research Report), the Technology sector company, was revisited by a Wall Street analyst today. Analyst Harlan Sur from J.P. Morgan maintained a Buy rating on the stock and has a $685.00 price target.

Harlan Sur has given his Buy rating due to a combination of factors that highlight Synopsys’s strong position in the market despite some challenges. The company continues to show robust activity in AI and leading-edge chip design, which are expected to drive significant growth. This is complemented by improvements in the automotive and industrial sectors, which help to offset the decline in revenue from China due to macroeconomic factors and trade restrictions.
Moreover, Synopsys’s new hardware products, such as the HAPS 200 prototyping systems and ZeBu 200 systems, are performing well and are anticipated to spur a strong upgrade cycle. The company’s backlog has increased, indicating strong future demand. Additionally, Synopsys’s strategic investments in emulation and AI, alongside its focus on expanding its software integrity business, position it for faster growth and margin expansion. These elements collectively support the expectation of Synopsys outperforming its peers, justifying the Buy rating.

In another report released today, KeyBanc also maintained a Buy rating on the stock with a $575.00 price target.

Based on the recent corporate insider activity of 60 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of SNPS in relation to earlier this year.