Where Synopsys Stands With Analysts

Providing a diverse range of perspectives from bullish to bearish, 8 analysts have published ratings on Synopsys SNPS in the last three months.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $618.75, a high estimate of $660.00, and a low estimate of $540.00. Highlighting a 1.99% decrease, the current average has fallen from the previous average price target of $631.29.

Decoding Analyst Ratings: A Detailed Look

The standing of Synopsys among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Synopsys. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Synopsys compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Synopsys's stock. This comparison reveals trends in analysts' expectations over time.

To gain a panoramic view of Synopsys's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Synopsys analyst ratings.

Delving into Synopsys's Background

Synopsys is a provider of electronic design automation software and intellectual property products. EDA software automates and aids in the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. Synopsys' comprehensive portfolio is benefiting from a convergence of semiconductor companies moving up the stack of technologies toward systems-like companies, and systems companies moving down-stack toward in-house chip design. The resulting expansion in EDA customers alongside secular digitalization of various end markets benefits EDA vendors like Synopsys.

Unraveling the Financial Story of Synopsys

Market Capitalization Analysis: The company's market capitalization is below the industry average, suggesting that it is relatively smaller compared to peers. This could be due to various factors, including perceived growth potential or operational scale.

Revenue Growth: Synopsys displayed positive results in 3 months. As of 31 October, 2024, the company achieved a solid revenue growth rate of approximately 11.49%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Synopsys's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 68.1% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Synopsys's ROE excels beyond industry benchmarks, reaching 13.34%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 9.01%, the company showcases effective utilization of assets.

Debt Management: Synopsys's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.08.

What Are Analyst Ratings?

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.