Synopsys upgraded to Buy at BofA with China worries proven ‘overly conservative’

As previously reported, BofA analyst Vivek Arya upgraded Synopsys (SNPS) to Buy from Neutral with an unchanged price target of $410. His prior concerns about the impact from China restrictions on electronic design automation, or EDA, demand "have proven to be overly conservative," said Arya, who notes that most U.S. restrictions were focused on the delivery of fab equipment and not EDA. In addition, the EDA toolmaker "leaders" Synopsys and Cadence Design (CDNS) have already removed certain sensitive advanced technologies from their tools shipped to China, minimizing the potential impact, Arya tells investors.