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Synopsys Inc SNPS Stock Quote

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Morningstar‘s Stock Analysis SNPS

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Is it the right time to buy or sell?

1-Star Price

INVESTOR

5-Star Price

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Economic Moat

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Capital Allocation

INVESTOR

Synopsys Enjoys Being in Demand As Technical Complexity Persists; FVE Up to $343

Abhinav Davuluri, CFA Sector Strategist

Analyst Note

| Abhinav Davuluri, CFA |

Narrow-moat Synopsys reported strong third-quarter results, with revenue and adjusted EPS surpassing both management’s and our at-consensus expectations. The firm raised its fiscal 2022 outlook, reflecting the intensified demand environment as consumer and business applications require both higher chip content and complexity. We expect Synopsys to continue to benefit from the increasing reliance on automation in design flows, and therefore raise our fair value estimate to $343 per share from $334. Like many other companies in the sector, Synopsys has enjoyed a bounce back in share price following the software selloff earlier in the year, however, with shares trading around $384 after-hours, we view the shares as overvalued.

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Key Statistics SNPS

Company Profile SNPS

Business Description

Synopsys is a provider of electronic design automation software, intellectual property, and software integrity products. EDA software automates the chip design process, enhancing design accuracy, productivity, and complexity in a full-flow end-to-end solution. The firm’s growing SI business allows customers to continuously manage and test the code base for security and quality. Synopsys’ comprehensive portfolio is benefiting from a mutual convergence of semiconductor companies moving up-stack toward systems-like companies, and systems companies moving down-stack toward in-house chip design. The resulting expansion in EDA customers alongside secular digitalization of various end markets benefits EDA vendors like Synopsys.

Contact
690 East Middlefield Road
Mountain View, CA, 94043
T +1 650 584-5000
Industry Software - Infrastructure
Most Recent Earnings Jul 31, 2022
Fiscal Year End Oct 30, 2022
Employees 16,361