Where Synopsys Stands With Analysts

In the latest quarter, 8 analysts provided ratings for Synopsys SNPS, showcasing a mix of bullish and bearish perspectives.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Analysts have recently evaluated Synopsys and provided 12-month price targets. The average target is $648.38, accompanied by a high estimate of $672.00 and a low estimate of $615.00. Witnessing a positive shift, the current average has risen by 0.92% from the previous average price target of $642.50.

Analyzing Analyst Ratings: A Detailed Breakdown

A clear picture of Synopsys's perception among financial experts is painted 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: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Synopsys. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Synopsys compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Synopsys's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Synopsys's market standing. Stay informed and make data-driven decisions with our Ratings Table.

Stay up to date on Synopsys analyst ratings.

Unveiling the Story Behind Synopsys

Synopsys is a provider of electronic design automation software, intellectual property, and software integrity products. EDA software automates the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. The firm's growing SI business allows customers to continuously manage and test the code base for security and quality. Synopsys' comprehensive portfolio is benefiting from a mutual convergence of semiconductor companies moving up-stack 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.

Synopsys: Delving into Financials

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Synopsys's remarkable performance in 3 months is evident. As of 31 January, 2024, the company achieved an impressive revenue growth rate of 21.15%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Synopsys's net margin is impressive, surpassing industry averages. With a net margin of 27.23%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Synopsys's ROE stands out, surpassing industry averages. With an impressive ROE of 7.01%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Synopsys's ROA excels beyond industry benchmarks, reaching 4.3%. This signifies efficient management of assets and strong financial health.

Debt Management: Synopsys's debt-to-equity ratio is below the industry average at 0.1, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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