Synopsys price target lowered to $560 from $615 at Wolfe Research

Wolfe Research lowered the firm’s price target on Synopsys (SNPS) to $560 from $615 and keeps an Outperform rating on the shares after the company announced plans to acquire Ansys (ANSS). The analyst believes the deal would enhance Synopsys’ core electronic design automation position and financial profile. However, the deal is not expected to close until the first half of 2025, meaning material synergies are not expected to come through in the near-term and regulatory approval remains a risk, the analyst tells investors in a research note. As such, Wolfe would not be surprised to see Synopsys shares range bound until we get more certainty on deal closure.