Analyst Ratings For Synopsys

Ratings for Synopsys SNPS were provided by 9 analysts in the past three months, showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $655.0, a high estimate of $687.00, and a low estimate of $635.00. This upward trend is apparent, with the current average reflecting a 1.15% increase from the previous average price target of $647.57.

Decoding Analyst Ratings: A Detailed Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Synopsys. The following summary 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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Synopsys compared to the broader market.
• Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Synopsys's stock. This examination reveals shifts 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.

All You Need to Know About 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.

Understanding the Numbers: Synopsys's Finances

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 revenue growth over a period of 3 months has been noteworthy. As of 31 July, 2024, the company achieved a revenue growth rate of approximately 12.65%. This indicates a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Synopsys's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 26.74%, the company showcases strong profitability and effective cost management.

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 financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.6%, the company showcases efficient use of assets and strong financial health.

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.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.

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