Mizuho Securities has revised its price target for Synopsys (SNPS, Financial), adjusting it downward to $600 from the previous $650. Despite this change, the firm maintains a positive outlook on the stock, retaining an Outperform rating as they prepare for the upcoming Q1 earnings reports within the software sector.
The adjustment reflects a broader response to recent contractions in software valuations, which have prompted a reevaluation of price targets across the industry. However, analysts at Mizuho highlight that the recent decline in stock prices could present an appealing entry point for investors looking for opportunities.
While Mizuho forecasts solid Q1 performance from many companies, they also anticipate a cautious tone from management when discussing the fiscal year's outlook. Despite these cautionary notes, the fundamental strengths of software-as-a-service models remain robust, with economic factors such as tariffs expected to have minimal impact on core operations.
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.
