SNPS SYNOPSYS INC

Price Chart

Executive Summary

B of A Securities upgraded Synopsys (SNPS) from Neutral to Buy on Dec 11, 2025, raising its price target to $560 from $500, implying 16% upside from the current $482.60. The move was part of a 16-firm analyst cluster, but B. of A.’s track record is weak (20% accuracy on 5 calls, avg return 4.4%). Consensus remains heavily bullish: 24 of 31 analysts rate Buy or Strong Buy (70%), with a mean target of $534.65 and median of $540. However, recent actions show headwinds: Morgan Stanley downgraded to Equal-Weight (PT $480) on Feb 27, 2026, and Piper Sandler downgraded to Neutral (PT $520) on Jan 13, 2026. EPS revisions are mixed — near-term (-1Q) saw 2 up and 13 down revisions in 30 days, but full-year +0Y saw 22 up, 0 down, suggesting long-term confidence. Institutional buying is robust: FMR LLC added 29.1% and 47.5% in two filings, and Morgan Stanley doubled its position (+139.5%). Short interest sits at 58.2% of float, a bearish bet against the stock. The upgrade from a low-accuracy firm aligned with consensus offers limited surprise, but the cluster and institutional flows provide underlying support.

Impact Score

Consensus & Targets

Of 31 analysts covering SNPS, 8 rate Strong Buy, 16 Buy, 6 Hold, and 1 Sell — a 70% bullish consensus (24 Buy/Strong Buy). The direction is firmly bullish, with only one sell rating. This upgrade aligns with the prevailing view, reducing its contrarian impact.

Mean price target is $534.65, median $540, with a high of $650 and low of $403.85. At $482.60, the implied upside to the mean is 10.8%. B of A’s new PT of $560 is above the mean and median, placing it in the top quartile of targets but still 14% below the high of $650 (from JP Morgan).

Recent Analyst Activity

The 30-day analyst activity shows 0 net upgrades and 0 downgrades, but recent individual actions include a Morgan Stanley downgrade (Feb 27, Equal-Weight, PT $480) and a Piper Sandler downgrade (Jan 13, Neutral, PT $520). EPS revisions are mixed: next quarter (-1Q) had 13 down revisions vs 2 up in 30 days, while full current year (+0Y) had 22 up and 0 down, indicating near-term caution but longer-term optimism.

Firm Track Record — B of A Securities

B of A Securities accuracy: 54% on 3282 calls | avg return: 5.1%

Industry benchmark: mean 51% ± 11%. Top tier: ≥61% (mean + 1σ). Based on 12 firms with ≥5 scored calls.

B of A Securities has a 20% accuracy rate (1 correct out of 5 calls) with an average return of 4.4% — well below the top-tier firms covering SNPS. The best performers are Mizuho (100% on 3 calls, avg return 17%) and Stifel (100% on 2 calls, avg return 28.1%). The worst is Baird (20% on 5 calls, avg return -2.8%). B of A’s call carries less weight given its poor track record.

Earnings Estimates

Next earnings: May 26, 2026

Cross-Platform Signals

Insider trades and congressional activity are absent. Institutional data is strongly bullish: FMR LLC increased holdings by 29.1% and 47.5% in two separate filings, and Morgan Stanley doubled its position (+139.5%). Norges Bank and Two Sigma initiated new positions. Short interest is elevated at 58.2% of float, signaling bearish bets that could fuel a squeeze if the stock rallies. The divergence between institutional buying and high short interest creates a volatile backdrop.

Documents Analyzed

Report based on filing metadata.

US Market Status