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Investing.com - Baird downgraded Synopsys (NASDAQ:SNPS) from Outperform to Neutral and lowered its price target to $535.00 from $670.00. The stock, currently trading at $604.37, appears overvalued according to InvestingPro analysis, which aligns with Baird’s cautious stance.
The downgrade reflects Baird’s concerns about material changes in Synopsys’ Design IP outlook, including challenges related to China restrictions and customer behavior.
Baird also cited issues with a major foundry customer and shifting roadmap decisions as the company’s prior approach has not yielded expected results.
The firm noted that Synopsys’ fourth-quarter fiscal 2025 outlook falls well below expectations after the company de-risked its IP forecast.
Baird expects IP growth in fiscal year 2026 to remain muted, with additional information expected in the next financial report.
In other recent news, Synopsys Inc . announced its financial results for the third quarter of 2025, reporting earnings per share of $3.39. This figure fell short of analyst expectations, which were set at $3.80. The company’s revenue for the quarter was $1.74 billion, missing the forecasted $1.77 billion. These results highlight a challenging period for Synopsys as it navigates market expectations. Analyst firms have not yet publicly adjusted their ratings following this earnings report. Investors may be closely monitoring any forthcoming updates or guidance from the company. These developments are part of the recent financial landscape for Synopsys.
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