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HSBC Downgrades Synopsys Citing Transition Year and Limited Near-Term Catalysts

HSBC downgraded Synopsys (NASDAQ: SNPS) to Hold from Buy and set a price target of $455.

The analyst stated that fiscal 2026 is expected to be a transitional year for the company, driven by geopolitical uncertainty and challenges related to Intel’s foundry operations, which could affect its Electronic Design Automation (EDA) business. The EDA segment accounted for more than 60% of total revenue in fiscal 2025.

Additionally, growth in the Design IP segment is projected to be muted relative to the company’s long-term mid-teens growth outlook, as management pivots its IP portfolio toward artificial intelligence-focused opportunities.

Given these headwinds and the absence of clear near-term catalysts, HSBC lowered its rating to Hold.

Published on: February 20, 2026