Needham & Company analyst Richard Valera reiterated a Buy rating and boosted his price target on Synopsys (NASDAQ: SNPS) to $47.00 (from $45.00) on strong Q4 results.

Valera commented, "SNPS delivered solid top and bottom line results for 4QF14, but more importantly capped a year of strong bookings, which helped drive a meaningful increase in backlog and improved the company's backlog coverage (i.e., visibility) relative to a year ago. As well, we see the company at the start of a multi-year ICC II upgrade cycle, which should provide a tailwind to its core EDA growth while it also benefits from increasing contribution from its mid-F2014 Coverity acquisition. With the shares trading at only ~14x our cash-adjusted F15 NG EPS, we reiterate our Buy rating; we also increase PT to $47 (was $45), or ~15x our cash-adjusted F15 NG EPS."

The firm maintained FY 2015 EPS at $2.69 and set FY 2016 EPS at $2.92.

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Shares of Synopsys closed at $43.00 yesterday.