Needham & Company Reiterates a 'Buy' on Synopsys (SNPS); Strong 2Q Suggest EDA Remains Healthy

May 24, 2012 8:11 AM EDT Send to a Friend
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Price: $42.49 +0.85%

Rating Summary:
    2 Buy, 1 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 13 | Down: 18 | New: 41
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Needham & Company reiterates a 'Buy' on Synopsys (NASDAQ: SNPS) price target of $36.00.

Analyst, Richard Valera, said, "Despite all of the macro turmoil, SNPS delivered strong 2QF12 results and offered a bullish view of the current state of the EDA industry, consistent with what we saw from Cadence (Nasdaq: CDNS)(Buy) last month and what we expect from Mentor (Nasdaq: MENT)(Buy) this Friday. The company also closed on its acquisition of LAVA, and appears well on its way to making it accretive, notwithstanding underwhelming revenue expectations as LAVA’s revenue is converted to a true ratable model. We reiterate our rating and our PT, based on ~15x our cash-adjusted F13 EPS estimate."

"Our F12 estimates increase to $1.75B and $2.06 NG EPS from $1.67B and $2.02. Our F13 estimates increase to $1.88B and $2.25 from $1.76B/$2.21."

For an analyst ratings summary and ratings history on Synopsys click here. For more ratings news on Synopsys click here.

Shares of Synopsys closed at $28.20 yesterday.


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