Stock Price & Analysis

Based on the technical indicators and analyst ratings, SNPS shows a neutral to bullish trend with upside potential. The stock is trading above its 20-day SMA of $495.94 with an RSI of 59.27, indicating moderate momentum without being overbought. Recent analyst coverage remains predominantly positive, with multiple "Strong Buy" ratings and price targets ranging from $540 to $660, suggesting 10-28% upside potential.

The stock should be held at current levels with potential to accumulate on dips, as the company maintains strong fundamentals in the EDA market and benefits from structural growth drivers including AI tools monetization and multi-die designs.

Based on the technical indicators and recent market data, Synopsys (SNPS) stock is projected to reach $575-585 by end of 2025, driven by strong fundamentals and positive analyst sentiment showing an 8.9% YTD gain. The company's robust growth in the EDA market and strategic contract wins with leading semiconductor companies support this bullish outlook. Technical analysis shows an RSI of 59.27 and positive momentum with the stock trading above its 60-day SMA of $520.96, indicating further upside potential.

The S1 support level for SNPS Stock is $492.69 ,The R1 resistant level for SNPS Stock is $547.43.

As of the end of day on 2025-01-24, the price of SNPS Stock was $545.41.

The target price for SNPS Stock according to analyst rating is 636.67, with the highest price target at 690.00 and the lowest at 540.00. Analysts have a Strong Buy rating on SNPS Stock overall.

The market cap of SNPS is $84.4B.

Based on the provided data, here's a comprehensive analysis of SNPS's valuation:

Valuation Analysis SNPS currently shows a forward P/E of 35.39 (Q4 2024), which has significantly decreased from 59.85 in Q1 2024, indicating improving earnings efficiency. The EV/EBITDA ratio has also moderated to 40.15, suggesting a more reasonable valuation compared to earlier quarters.

Financial Performance The company demonstrates strong financial health with:

• Consistent revenue growth reaching $1.64B in Q4 2024
• Impressive net income of $1.11B in Q4 2024
• Healthy gross margins maintaining above 76%
• Strong ROE of 19.05%
• Solid current ratio of 2.44, indicating good liquidity

Analyst Consensus Recent analyst actions show mixed sentiment:

• Wells Fargo maintained Hold rating with $540 PT (Jan 13, 2025)
• Redburn Atlantic initiated coverage with Strong Buy and $600 PT (Jan 13, 2025)
• Piper Sandler lowered PT to $655 but maintained Buy rating (Dec 6, 2024)

Conclusion While SNPS's valuation metrics have improved significantly over 2024, the stock is currently fairly valued rather than overvalued, considering:

1. Strong financial performance and margin expansion
2. Solid balance sheet with minimal debt
3. Leadership position in EDA market
4. Multiple growth drivers including GenAI tools and multi-die designs
5. Consistent analyst support with majority maintaining Buy ratings

Synopsys, Inc. is engaged in supplying the electronic design automation (EDA) software that engineers use to design and test integrated circuits (ICs), chips or silicon. The Company provides software and hardware used to validate the electronic systems that incorporate chips and the software that runs on them, including cloud-based digital design flow to boost chip-design development productivity. It also provides technical services and support. The Company has three segments. Design Automation segment includes its advanced silicon design, verification products and services, system integration products and services, digital, custom and FPGA IC design software, verification software and hardware products, manufacturing software products, and other. Design IP segment includes its Design IP products. Software Integrity segment includes solutions that test software code for security vulnerabilities and quality defects, as well as professional and managed services.

Based on the provided data and market analysis, Synopsys (SNPS) stock is projected to reach $850 by 2030, driven by its strong position in the EDA market and continuous product innovation in AI-driven chip design tools. The company's robust fundamentals, including an 88% rating from Validea's P/B Growth Investor model and sustained growth in recurring revenue, support this bullish outlook. Recent positive analyst moves and year-to-date stock price increase of 8.9% further reinforce the growth trajectory.

SNPS has a total of 20300 employees.