KeyBanc Capital Markets has revised its price target for Synopsys (SNPS, Financial), lowering it from $690 to $555 while maintaining an Overweight rating on the company's shares. This adjustment follows a detailed discussion with Synopsys' CEO, Sassine Ghazi, and CFO, Shelagh Glaser.
Despite concerns regarding the company's exposure to issues in China, KeyBanc expressed reassurance upon learning that Synopsys has manufacturing operations spread across various countries. Furthermore, the firm highlighted that initial demand for Synopsys' offerings has been "oversubscribed," indicating strong interest in their products.
KeyBanc's decision to lower the price target is primarily attributed to recent declines in software valuations. However, the firm remains optimistic about Synopsys' potential, citing multiple catalysts expected in the latter half of the year. With current trading levels near a historical low over the past three years, KeyBanc considers Synopsys to offer a favorable risk-reward balance for investors.
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 $605.97 with a high estimate of $707.78 and a low estimate of $496.12. The average target implies an upside of 43.60% from the current price of $421.98. 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 $615.96, suggesting a upside of 45.97% from the current price of $421.98. 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.
