Synopsys (SNPS) stock is up on Sept. 24 after a senior BNP Paribas analyst, Andrew DeGasperi, upgraded the electronic design automation (EDA) specialist to “Neutral.” In his research note, DeGasperi raised his price objective on the Nasdaq-listed firm as well to $420. The upward revision does not, however, represent meaningful upside from current levels.
At the time of writing, Synopsys shares are down about 20% versus their year-to-date high.
More Top Stocks Daily: Go behind Wall Street’s hottest headlines with Barchart’s Active Investor newsletter.
www.barchart.comWhat Made BNP Paribas Upgrade Synopsys Stock
DeGasperi expects the upcoming Investor Day on Sept. 30 to serve as a meaningful positive catalyst for SNPS shares.
He views the company’s current risk-reward profile as increasingly favorable given it’s attractively priced (relative to peers including Cadence Design Systems) amid easing industry headwinds.
Historical concerns like Intel’s capex adjustments and Chinese demand are improving. Meanwhile, “Ansys integration is also progressing well,” which makes Synopsys a compelling long-term hold, he told clients.
Even from a technical perspective, the multinational has recently reclaimed its 20-day and 50-day moving averages (MAs), with an RSI in the late 50s indicating significant pressure that may drive its share price higher through the remainder of 2026.
AI Disruption Fears are Overblown for SNPS Shares
Addressing broader concerns regarding generative AI replacing traditional engineering tools, BNP Paribas argued that operational risks to Synopsys’s flagship silicon design tools are theoretical at present.
While advancements in geometric modeling from emerging AI firms could temporarily weigh on physical simulation software, the company’s essential role in chip design remains intact, its analyst added.
Still, DeGasperi rates Synopsys shares at “Neutral” as he’s “skeptical that Ansys’s low double-digit growth may not be sustainable at these levels for long.”
What’s the Consensus Rating on Synopsys?
Other Wall Street analysts are significantly more bullish on what the future holds for SNPS stock.
According to Barchart, the consensus rating on Synopsys sits at “Strong Buy,” with the mean price target of nearly $552 indicating potential for significant further upside over the next 12 months.
www.barchart.com On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
More news from Barchart
This Analyst Just Upgraded Synopsys Stock. Here's Why. Oracle Just Dealt Bloom Energy a Major Blow. What Comes Next for BE Stock. Down Nearly 80%, Nike Just Won a University-Sized Catalyst From Adidas Why These Wall Street Analysts Think Microsoft Stock Is ‘Getting Back on Track