United Homes Group stock plunges after Nikki Haley, directors resign
Investing.com - KeyBanc has lowered its price target on Synopsys (NASDAQ:SNPS) to $590.00 from $660.00 while maintaining an Overweight rating on the stock. The company, currently trading at $604.37, appears overvalued according to InvestingPro models.
The adjustment follows what KeyBanc described as a "messy and underwhelming" fiscal third-quarter performance from the electronic design automation company. Despite maintaining impressive gross profit margins of 81%, InvestingPro data shows three analysts have revised their earnings downward for the upcoming period.
KeyBanc estimates that Synopsys is reducing its fiscal year 2025 guidance by approximately $480 million, which the firm considers "overly conservative."
The research firm expressed frustration with the lack of disclosures regarding Ansys, making it difficult to evaluate different aspects of Synopsys’ business following the merger between the two companies.
Despite the price target reduction due to "heightened execution risk," KeyBanc remains positive on secular electronic design automation industry tailwinds and Synopsys’ opportunities in 3D-IC, artificial intelligence, and margin expansion.
In other recent news, Synopsys reported fiscal third-quarter revenue of $1.74 billion, which fell short of the consensus estimate of $1.77 billion. The company’s adjusted earnings per share were $3.39, missing the expected $3.80. This performance has drawn attention from several analyst firms. Needham lowered its price target for Synopsys to $550, citing a mixed quarter and weaknesses in the company’s intellectual property (IP) business, despite maintaining a Buy rating. Rosenblatt downgraded Synopsys from Buy to Neutral, also highlighting weaker-than-expected performance in the IP segment, and adjusted its price target to $605. Stifel, while maintaining a Buy rating, reduced its price target to $550 due to the earnings miss. Meanwhile, Mizuho maintained its Outperform rating with a $700 price target, noting strong performance in the design automation segment. Wolfe Research also lowered its price target to $540, maintaining an Outperform rating. These developments follow Synopsys’s recent acquisition of Ansys, which contributed to the company’s revenue.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.