Synopsys stock price target raised to $660 from $615 at Piper Sandler

Published 21/07/2025, 15:00
Synopsys stock price target raised to $660 from $615 at Piper Sandler

Investing.com - Piper Sandler raised its price target on Synopsys (NASDAQ:SNPS) to $660 from $615 on Monday, while maintaining an Overweight rating on the semiconductor design software company. The stock, currently trading at $588.55, sits near its 52-week high of $600.89, having delivered an impressive 20.48% return year-to-date. According to InvestingPro analysis, the stock appears to be trading above its Fair Value.

The price target increase follows Synopsys’ completed acquisition of Ansys (NASDAQ:ANSS), creating a combined entity with a $10 billion run-rate and leadership across silicon design, systems engineering, and complex simulation software.

Piper Sandler noted that the acquisition has successfully cleared regulatory approvals, marking a significant milestone for the company’s expansion strategy.

The firm identified several near-term catalysts for Synopsys, including the reinstatement of guidance with clarity on how temporary China export controls might impact fiscal year 2025 expectations.

Analysts are also watching for new information on the financial outcomes of the Synopsys-Ansys combination, including the timeline for EPS accretion and the impact of approximately $14.3 billion in debt financing at an effective interest rate of about 5%.

In other recent news, Synopsys has completed its acquisition of Ansys, enhancing its position in the engineering solutions market. The company anticipates that this acquisition will expand profit margins and generate greater unlevered free cash flow, facilitating rapid debt reduction over the next two years. As part of this transition, Ansys’ former executives have joined Synopsys’ board of directors. Needham has raised its price target for Synopsys to $660, maintaining a Buy rating, following China’s conditional approval of the Ansys deal. The firm projects that the acquisition will be slightly accretive to Synopsys’ earnings per share by fiscal year 2026. Additionally, Synopsys has received conditional approval from China’s market regulator, which includes stipulations regarding customer contracts. Goldman Sachs has initiated coverage on Synopsys with a Buy rating and a price target of $620, citing the company’s exposure to multiple growth drivers in the semiconductor industry. The firm also noted the acquisition of Ansys as a strategic positive.

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