Stock Price & Analysis

Based on the recent data and market analysis, here's a concise assessment of SNPS:

Technical Analysis

• The stock has shown significant weakness, falling from its recent high of $629.38 to $575.65
• RSI at 35.07 indicates oversold conditions but not yet at extreme levels
• Trading below both 50-day and 200-day moving averages suggests bearish momentum

Fundamental Factors

• Strong growth potential in AI-driven semiconductor design tools
• Consensus rating remains "Strong Buy" from 18 analysts with mean price target of $642.44
• Pending acquisition of ANSYS could create significant synergies

Key Concerns

• Design Automation segment showing slowing growth with only 6% year-over-year increase
• Stock has underperformed broader market with -9.9% return over past year versus S&P 500's +23%
• Current valuation remains elevated compared to industry peers

Conclusion Based on the technical weakness and fundamental concerns about slowing growth, despite analyst optimism, it would be prudent to SELL SNPS at current levels. Consider re-entering once technical indicators show improvement or after the stock finds strong support levels.

Based on the provided data and analyst forecasts, here's a concise 3-sentence price prediction for SNPS stock by end of 2025:

Synopsys (SNPS) stock is projected to reach $641.82 by the end of 2025, representing a 35.17% upside from current levels, supported by expected earnings growth of 12.88% and revenue growth of 8.04% in FY2025. The bullish outlook is driven by robust EDA product sales growth, strong intellectual property demand linked to chiplet development, and the company's projected 10.2% revenue growth for FY25. However, there are some headwinds to consider as non-GAAP operating margins have slightly decreased from 37.2% to 36.9%, and FY25 revenue guidance of $6.775 billion falls below previously lowered expectations.

The S1 support level for SNPS Stock is $468.2 ,The R1 resistant level for SNPS Stock is $523.99.

As of the end of day on 2025-02-26, the price of SNPS Stock was $464.93.

The target price for SNPS Stock according to analyst rating is 630.00, 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 $70.8B.

Based on the provided data and current market conditions, here's a concise analysis of SNPS's valuation:

SNPS is currently showing signs of being overvalued based on multiple key metrics and recent performance:

The stock's current valuation metrics are significantly higher than historical averages, with P/E ratio at 60.41 (2023/FY) compared to 46.50 in 2022/FY, indicating substantial premium pricing.

Technical indicators suggest bearish momentum with RSI at 35.07 and MACD showing negative divergence (-4.81), while the stock is trading below both its 200-day SMA ($536.44) and 250-day SMA ($541.34).

Recent earnings outlook shows subdued revenue guidance for fiscal 2025 at $6.745-6.805 billion, which triggered a 12.4% stock decline despite strong Q4 performance.

The stock has underperformed the broader market significantly, dropping 9.9% over the past year while the S&P 500 gained 23%.

Current price of $478.82 is trading near the lower Fibonacci support level of $483, suggesting potential further downside risk unless fundamental catalysts emerge.

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 available data and market analysis, here is a projection for Synopsys (SNPS) stock price in 2030:

Synopsys stock is projected to reach approximately $1,250-1,350 by 2030, driven by the company's dominant position in the Electronic Design Automation (EDA) market and increasing demand for semiconductor design tools. The growth will be primarily fueled by three key structural drivers through the decade: rising ASIC/hyperscaler design flows, GenAI tools monetization, and multi-die design adoption.

The strong fundamentals support this projection, with the company maintaining healthy margins (79.41% gross margin) and solid revenue growth trajectory. Recent analyst consensus shows strong bullish sentiment with 15 "Strong Buy" ratings out of 18 total analysts.

SNPS has a total of 20300 employees.