Navigating 7 Analyst Ratings For Synopsys

During the last three months, 7 analysts shared their evaluations of Synopsys SNPS, revealing diverse outlooks from bullish to bearish.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $657.86, a high estimate of $687.00, and a low estimate of $635.00. Observing a 1.39% increase, the current average has risen from the previous average price target of $648.83.

Interpreting Analyst Ratings: A Closer Look

The standing of Synopsys among financial experts is revealed through an in-depth exploration 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: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Synopsys compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Synopsys's stock. This analysis reveals shifts in analysts' expectations over time.

Capture valuable insights into Synopsys's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic 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.

Key Indicators: Synopsys's Financial Health

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Synopsys displayed positive results in 3 months. As of 31 July, 2024, the company achieved a solid revenue growth rate of approximately 12.65%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Synopsys's net margin excels beyond industry benchmarks, reaching 26.74%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Synopsys's ROE stands out, surpassing industry averages. With an impressive ROE of 5.49%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Synopsys's ROA stands out, surpassing industry averages. With an impressive ROA of 3.6%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Synopsys's debt-to-equity ratio is below the industry average at 0.09, reflecting a lower dependency on debt financing and a more conservative financial approach.

Analyst Ratings: What Are They?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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