Siemens' $10.6 billion Altair deal strengthens its industrial software offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 31 2024
0mins
Source: Reuters
Siemens Acquires Altair Engineering: Siemens is acquiring U.S. engineering software firm Altair Engineering for $10.6 billion, enhancing its position in the industrial software market and increasing its market share in product lifecycle management (PLM) simulation software from 9% to 15%.
Strategic Focus and Financial Impact: The acquisition aims to bolster Siemens' digital industries division and is expected to add approximately $500 million in annual revenue in the mid-term, with long-term projections exceeding $1 billion per year, while also strengthening its capabilities in artificial intelligence and high-performance computing.
Analyst Views on SNPS
Wall Street analysts forecast SNPS stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SNPS is 565.64 USD with a low forecast of 500.00 USD and a high forecast of 602.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Analyst Rating
10 Buy
2 Hold
0 Sell
Strong Buy
Current: 509.470
Low
500.00
Averages
565.64
High
602.00
Current: 509.470
Low
500.00
Averages
565.64
High
602.00
About SNPS
Synopsys, Inc. is engaged in providing engineering solutions from silicon to systems, enabling customers to innovate artificial intelligence (AI)-powered products. It delivers silicon design, intellectual property (IP), simulation and analysis solutions, and design services. It supplies mission-critical electronic design automation (EDA) software that engineers use to design and test integrated circuits (ICs). Its Design Automation segment includes its advanced silicon design, verification products and services and system integration products. This segment also includes digital, custom and field programmable gate arrays, integrated circuit design software, verification software and hardware products, system integration products and services, and manufacturing software products. Its Design IP segment includes its interface, foundation, security, and embedded processor IP, IP subsystems, and IP implementation services that serve companies in the semiconductor and electronics industries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
