Needham & Company reiterated a Buy rating on Synopsys (NASDAQ: SNPS), and raised the price target to $60.00 (from $54.00), following the company's 3Q earnings report. SNPS reported revenue of $615.2MM and NG EPS of $0.76, exceeding the consensus of $603.1MM and $0.75, respectively.

Analyst Richard Valera commented, "SNPS again delivered upside top and bottom line results in F3Q16 and increased its F2016 guidance, citing notable strength in hardware and, to a lesser degree, IP. We believe SNPS is gaining share in its hardware business following considerable investment in the software front-ends for these products, while also apparently holding its own on renewals with its consolidated semi customers. As such, we see SNPS well positioned to continue to perform solidly despite the tough macro backdrop. We reiterate our Buy and raise our PT to $60 (was $54), or ~17x ex -cash F17 NG EPS."

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Shares of Synopsys closed at $55.89 yesterday.