Bank of America just raised its EUR/USD forecast
Investing.com - Needham has raised its price target on Synopsys (NASDAQ:SNPS) to $660.00 from $650.00 while maintaining a Buy rating following China’s conditional approval of the company’s acquisition of Ansys (NASDAQ:ANSS). The software giant, currently valued at $85.27 billion, maintains impressive gross profit margins of 81.4% and has demonstrated strong financial health according to InvestingPro analysis.
The research firm noted that Synopsys announced on Monday that Chinese regulators had conditionally approved its acquisition of Ansys, with the deal expected to close on or around July 17.
Needham has updated its model for Synopsys by incorporating Ansys contribution using consensus estimates, projecting that the deal will be slightly accretive to Synopsys’ earnings per share in fiscal year 2026, earlier than the company’s own projection of fiscal year 2027.
The combined company is expected to exceed $10 billion in total revenue in fiscal year 2026, positioning Synopsys as the premier chip-to-system design software company and strengthening its competitive position.
Needham believes a catch-up rally in Synopsys stock is overdue as the uncertainty surrounding the deal diminishes.
In other recent news, Synopsys has received conditional approval from China’s State Administration for Market Regulation for its acquisition of Ansys. This approval comes with specific conditions regarding customer contracts, which Synopsys must honor. Additionally, the U.S. Department of Commerce has rescinded export restrictions related to Synopsys’ business with China, allowing the company to restore access to previously restricted products. Synopsys also announced a strengthened collaboration with Samsung (KS:005930) Foundry to advance chip designs for edge AI and high-performance computing. This partnership includes successful customer tape-outs and improvements in design technology. Meanwhile, Goldman Sachs initiated coverage on Synopsys with a Buy rating, citing its role as a critical provider of semiconductor design software tools. The firm also highlighted Synopsys’ broadening customer base and potential growth opportunities. Lastly, The Trade Desk (NASDAQ:TTD) will join the S&P 500 index, replacing ANSYS , which is being acquired by Synopsys. This inclusion is set to happen before trading opens on July 18, 2025.
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