Synopsys Inc (NASDAQ:SNPS) is a leading company in the electronic design automation industry, providing software and intellectual property for semiconductor design. The company plays a crucial role in the chip design process, offering tools that help engineers create complex integrated circuits. Synopsys competes with other major players like Cadence Design Systems and Mentor Graphics.
On December 12, 2025, Morgan Stanley upgraded Synopsys to an "Overweight" rating, with the stock priced at $477.36. This upgrade reflects confidence in Synopsys' future performance. Morgan Stanley also raised the price target from $510 to $550, indicating a positive outlook for the stock's potential growth.
Bank of America also upgraded Synopsys from 'Neutral' to 'Buy', citing stronger-than-expected fiscal 2026 earnings guidance. The upgrade is supported by reduced risks related to China and Intel. Bank of America increased its price target to $560, significantly above the current trading level of approximately $478.
Synopsys' fiscal 2026 earnings per share (EPS) forecast has exceeded expectations, even with a higher tax rate. The company projects fiscal 2026 revenue to reach $9.6 billion, with $2.9 billion from Ansys, suggesting an 8% year-over-year growth for its core business. This strong earnings trajectory is emphasized by Bank of America.
Analysts have revised their EPS estimates to $14.27 for fiscal 2026 and $17 for fiscal 2027. They highlight Synopsys' "attractive lower-beta AI-levered" exposure, supported by recurring revenue from chip design. The current stock price of SNPS is $476.73, with a market capitalization of approximately $88.55 billion.
