Bank Of America Maintains Buy On SNPS

Bank of America, citing strong guidance looking forward, is maintaining its Buy rating and its $36 price target on Synopsys SNPS. In the report, Bank of America states, “While semi customers are aware of the macro uncertainty, the secular trends of mobility and smart devices continue to keep new design starts and demand for EDA software strong. While no guidance for FY12 was given, the long term growth targets of mid-single digit for core EDA and mid-teens for IP & Systems suggest another double digit revenue growth year is possible next year, in line with our EDA recovery thesis. We increase our estimates and keep our Buy rating and $36 PO on a slightly higher cost of capital in our DCF.” SNPS closed yesterday at $23.44.