Synopsys (SNPS) PT Raised to $370 at Needham & Company

December 2, 2021 6:43 AM EST
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Price: $309.96 -0.7%

Rating Summary:
    15 Buy, 0 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 29 | Down: 34 | New: 45
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Needham & Company analyst Charles Shi raised the price target on Synopsys (NASDAQ: SNPS) to $370.00 (from $360.00) while maintaining a Buy rating.

The analyst commented, "Synopsys reported in-line results for F4Q21 (Oct) and guided F1Q22 (Jan) and FY22 meaningfully higher than respective consensus estimates. The highlights of the quarter include the record backlog of $6.9bn and the extended average contract duration that now exceeds three years (vs. historical range of 2.5-3 years). It remains to be seen whether longer contract duration is the new normal for the industry. However, investors should now be convinced that the EDA growth rate has accelerated to 10%+, and Synopsys' market position will remain secure for years to come. We believe the company could deliver upside to the FY22 outlook, and therefore raise our FY22 estimates to the respective high-end of the guidance ranges. We are raising our PT from $360 to $370 based on 39x our updated CY23 NG EPS estimate (ex. SBC). Reiterate Buy."

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