8 Analysts Have This To Say About Synopsys

In the preceding three months, 8 analysts have released ratings for Synopsys SNPS, presenting a wide array of perspectives from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over 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 $613.12, a high estimate of $660.00, and a low estimate of $550.00. Highlighting a 0.84% decrease, the current average has fallen from the previous average price target of $618.29.

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: 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: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Synopsys compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Synopsys's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Synopsys's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Synopsys analyst ratings.

Discovering Synopsys: A Closer Look

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.

Synopsys's Economic Impact: An Analysis

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: Synopsys displayed positive results in 3M. As of 30 April, 2025, the company achieved a solid revenue growth rate of approximately 10.28%. 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 excels beyond industry benchmarks, reaching 21.53%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Synopsys's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 3.59%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): Synopsys's ROA stands out, surpassing industry averages. With an impressive ROA of 1.88%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: With a high debt-to-equity ratio of 1.08, Synopsys faces challenges in effectively managing its debt levels, indicating potential financial strain.

How Are Analyst Ratings Determined?

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.

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.

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