Synopsys price target raised to $575 from $555 at KeyBanc

KeyBanc analyst Jason Celino raised the firm’s price target on Synopsys (SNPS) to $575 from $555 to reflect continued confidence, while keeping an Overweight rating on the shares. While the firm expects Q2 results to be in line with to slightly above the Street, it believes commentary on China and confidence in the Ansys deal closing to be the more important needle-movers. With what KeyBanc thinks are low expectations, the firm sees a positive risk-reward scenario where FY25 guidance is reiterated to reflect strength in IP and hardware, offsetting any China downtick, and the Ansys (ANSS) deal delayed to the the second half of the year. Net, KeyBanc believes investors continue to overestimate the challenges Synopsys potentially faces in the second half of the year.