Analysts See Sharp Upside In Synopsys Post Q4 Beat

Analysts raised their price targets on Synopsys Inc SNPS on Q4 beat and strong outlook.

• DA Davidson analyst Thomas Diffely raised the PT to $400 from $335 (15% upside) and kept a Buy. 
• The quarter reflects solid execution and broad-based strength across all segments and geographies, with records across revenue, EPS, backlog, and operating cash flow in FY21, highlighting the robust demand for Synopsys solutions. 
• Design activity continues to drive the industry higher, Diffely adds, stating that he expects rising chip complexity, AI adoption, the 5G proliferation to drive robust demand for all advanced EDA tools.
• KeyBanc analyst Jason Celino raised the PT to $395 from $347 (13% upside), given his confidence in EDA tailwinds and margin expansion opportunities. 
• The analyst notes Synopsys reported in-line Q4 results and issued meaningfully better 2022 revenue guidance above the double-digit baseline expectations. 
• Celino keeps an Overweight rating on the shares.
• Wells Fargo analyst Gary Mobley raised the PT to $415 from $400 (19% upside) and kept an Overweight following the disclosure that the company's backlog, or RPOs, increased 47% quarter-over-quarter. 
• Synopsys also announced the transition whereby Trac Pham, CFO, will retire once a successor is in place.
• Baird analyst Joe Vruwink raised the PT to $402 from $350 (15.4% upside) and kept an Outperform. 
• The analyst said he remains a buyer as the company issued annual guidance and a long-term framework that exceeded expectations.
• Needham analyst Charles Shi maintained a Buy and raised the PT from $360 to $370 (6% upside).
• Rosenblatt analyst Blair Abernethy maintained a Buy and raised the PT from $365 to $385 (10% upside).
• Price Action: SNPS shares traded higher by 4.1% at $348.47 on the last check Thursday.