We raise our target by $10 to $634, 41.5x our FY 25 EPS view, near peers and above SNPS’s three-year average (~32x) on accelerating AI-enabled design demand. We lower our FY 24 EPS view by $0.64 to $12.96 and lower FY 25’s by $0.72 to $15.28 as a result of the pending sale of the Software Integrity group (SIG) for ~$2B. We view the sale positively as SNPS focuses on consistent mid-teens core EDA growth, supported by a still-high backlog of $7.9B (-4% Q/Q, +8% Y/Y). SNPS posted Apr-Q sales of $1.46B (+15% Y/Y ex-SIG) and EPS of $3.00 (+26%), both near expectations, while lifting its FY 24 sales guide to +15% from +13%. Design IP (27% of Apr-Q sales) grew 19% on broad-based strength, and we expect continued momentum on rising design activity for next-gen architectures, led by strength in data center, with stability in automotive. In Design Automation (+14% Y/Y), we see growing adoption of SNPS’s AI portfolio over time as customers continue to show PPA improvements, supporting ~20% growth in contract pricing.