The proposed acquisition of Ansys (ANSS) by Synopsys (SNPS, Financial) is facing increasing uncertainty as traders express concerns about potential delays from China's antitrust regulators. The anxiety has caused the deal spread to widen significantly, now exceeding $40 per share. Although the merger has already received necessary approvals in the United States, United Kingdom, and Europe, China remains the last major regulatory hurdle.
This apprehension is compounded by the broader context of ongoing trade tensions, which could influence China's decision-making process. Market participants are closely monitoring the situation, as China's final approval is crucial for the completion of this high-stakes deal.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Synopsys Inc (SNPS, Financial) is $614.30 with a high estimate of $707.78 and a low estimate of $496.12. The average target implies an upside of 49.27% from the current price of $411.53. More detailed estimate data can be found on the Synopsys Inc (SNPS) Forecast page.
Based on the consensus recommendation from 20 brokerage firms, Synopsys Inc's (SNPS, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Synopsys Inc (SNPS, Financial) in one year is $616.11, suggesting a upside of 49.71% from the current price of $411.53. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Synopsys Inc (SNPS) Summary page.
