CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:
We raise our price target by $46 to $624, 39x our FY 25 (Oct.) EPS view, near peers and above SNPS’s 3-year historical average (~33x), given accelerating design complexity and AI momentum, as well as our positive view of the potential ANSYS acquisition. We raise our FY 24 EPS view by $0.15 to $13.60 and raise FY 25’s by $0.06 to $16.00. SNPS prints Jan-Q sales of $1.65B (+21% Y/Y) and EPS of $3.56 (+36%), both above consensus, while increasing its FY 24 EPS guide. Despite the rise, we think its outlook may include an overly cautious view on China (15% of Jan-Q sales vs. 12% in the prior Q). Design IP was particularly strong (sales +53% Y/Y to $526M), and we think SNPS’s industry-leading IP portfolio will continue to benefit from increasing chip/system complexity, further aided by its expanded partnership with Intel Foundry (announced during the call) for IP designed for Intel’s 18A process. Overall, we think SNPS is in a great position to benefit from the continued convergence of silicon and systems design.