Synopsys (NASDAQ:SNPS) Upgraded at BNP Paribas Exane

BNP Paribas Exane upgraded shares of Synopsys (NASDAQ:SNPS) from an underperform rating to a neutral rating in a research report released on Thursday morning, Marketbeat Ratings reports. The brokerage currently has $420.00 price objective on the semiconductor company’s stock.

A number of other analysts have also issued reports on the company. Berenberg Bank set a $633.00 price target on Synopsys in a research note on Wednesday, May 27th. Weiss Ratings lowered shares of Synopsys from a “hold (c)” rating to a “hold (c-)” rating in a research report on Friday, September 11th. Morgan Stanley cut their target price on Synopsys from $525.00 to $500.00 and set an “equal weight” rating on the stock in a research report on Wednesday, August 19th. Mizuho reduced their price target on shares of Synopsys from $600.00 to $550.00 and set an “outperform” rating on the stock in a research report on Thursday, August 27th. Finally, Needham & Company LLC reiterated a “buy” rating and set a $580.00 price objective on shares of Synopsys in a research note on Thursday, August 27th. Fifteen research analysts have rated the stock with a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $574.61.

Synopsys Stock Up 0.2%

Shares of NASDAQ SNPS opened at $425.76 on Thursday. The firm has a market cap of $81.59 billion, a P/E ratio of 75.22, a price-to-earnings-growth ratio of 2.33 and a beta of 1.23. The company has a debt-to-equity ratio of 0.29, a quick ratio of 1.24 and a current ratio of 1.34. Synopsys has a 1 year low of $362.55 and a 1 year high of $539.48. The firm’s 50 day moving average price is $400.90 and its 200 day moving average price is $435.61.

Synopsys (NASDAQ:SNPS) last issued its quarterly earnings results on Wednesday, August 26th. The semiconductor company reported $3.91 earnings per share for the quarter, beating the consensus estimate of $3.67 by $0.24. Synopsys had a return on equity of 6.24% and a net margin of 11.43%.The company had revenue of $2.48 billion during the quarter, compared to the consensus estimate of $2.44 billion. During the same period in the previous year, the firm posted $3.39 EPS. Synopsys’s revenue was up 42.4% on a year-over-year basis. Synopsys has set its Q4 2026 guidance at 4.100-4.160 EPS and its FY 2026 guidance at 15.040-15.100 EPS. As a group, sell-side analysts anticipate that Synopsys will post 11 earnings per share for the current year.

Insider Activity at Synopsys

In other news, CEO Sassine Ghazi sold 14,604 shares of the firm’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $374.88, for a total transaction of $5,474,747.52. Following the completion of the sale, the chief executive officer owned 76,865 shares of the company’s stock, valued at approximately $28,815,151.20. This trade represents a 15.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Aart de Geus sold 25,000 shares of Synopsys stock in a transaction on Monday, August 31st. The stock was sold at an average price of $441.76, for a total transaction of $11,044,000.00. Following the completion of the sale, the insider owned 120,421 shares of the company’s stock, valued at approximately $53,197,180.96. This trade represents a 17.19% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 89,245 shares of company stock valued at $37,992,919. Company insiders own 0.56% of the company’s stock.

Hedge Funds Weigh In On Synopsys

Several large investors have recently modified their holdings of SNPS. Mitsubishi UFJ Asset Management Co. Ltd. bought a new position in Synopsys during the second quarter worth $747,400,000. Man Group plc bought a new stake in shares of Synopsys during the 2nd quarter valued at about $55,900,000. Norges Bank acquired a new stake in shares of Synopsys during the 4th quarter worth approximately $730,197,000. Bank of America Corp DE bought a new position in Synopsys during the 2nd quarter worth $539,986,000. Finally, SBI Okasan Asset Management Co.Ltd. acquired a new stake in Synopsys in the fourth quarter worth $1,699,000. Institutional investors own 85.47% of the company’s stock.

Synopsys News Summary

Here are the key news stories impacting Synopsys this week:

• Positive Sentiment: HSBC upgraded Synopsys to Buy and set a $700 price target, implying substantial upside from the recent trading level. The bank expects AI-related demand in electronic design automation and sees roughly 28% earnings growth through 2028, improving the stock’s risk-reward profile. Synopsys Stock Climbs as HSBC Upgrades Software Giant on AI Growth Tailwinds
• Positive Sentiment: Synopsys and Taiwan Semiconductor are collaborating to accelerate AI-system innovation. The partnership supports Synopsys’ positioning in advanced chip-design software and could reinforce long-term demand from AI infrastructure investment. Synopsys, Taiwan Semiconductor Collaborate to Accelerate AI Systems Innovation
• Positive Sentiment: BNP Paribas Exane raised its rating on SNPS from Underperform to Neutral, citing a potentially positive investor-day catalyst. The upgrade removes a bearish call, although its $420 target remains below the recent share price. Synopsys Shares Rise After BNP Paribas Upgrade
• Neutral Sentiment: Analysts broadly maintain a Moderate Buy consensus, while Synopsys remains a sales-growth candidate with strong industry exposure. However, its elevated valuation and position below the 200-day moving average make further gains dependent on stronger execution and guidance.
• Negative Sentiment: Investor attention remains focused on Synopsys’ performance since its last earnings report, with the stock down about 8.6% over that period despite revenue growth of 42.4% and an earnings beat. This suggests expectations and valuation, rather than current operating momentum alone, are weighing on sentiment. Why Is Synopsys Down Since Last Earnings Report?
• Negative Sentiment: A Motley Fool analysis cautioned that Synopsys’ non-GAAP earnings may look stronger than underlying results after adjustments. That accounting-quality concern could limit the market’s willingness to assign a premium multiple, particularly with the stock’s high price-to-earnings ratio. Why Synopsys Stock Popped, Then Dropped

Synopsys Company Profile

Synopsys, Inc is a technology company that develops electronic design automation (EDA) software, semiconductor intellectual property (IP), and related services. Its products help semiconductor and electronics companies design, verify, test and manufacture integrated circuits and complex electronic systems.

The company’s EDA portfolio includes tools for digital and analog design, simulation, verification, physical implementation, signoff and manufacturing preparation. Synopsys also provides reusable semiconductor IP, including processor cores, interface technologies, embedded memories and security-related components, which customers can incorporate into system-on-chip designs.

Synopsys additionally offers software integrity and application security solutions that help organizations identify and manage vulnerabilities and risks in the software development lifecycle.