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Synopsys, Inc. (SNPS) Stock Analysis

Recovery setup · Catalyst-Driven edge

SellModerate Confidence

Technology · Software - Infrastructure

Sell if holding. Analyst target reached at $474.21 — A.R:R 0.1:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Weak overall score: 4.9/10.

Synopsys provides EDA software, semiconductor IP, and simulation/analysis solutions used to design and verify chips globally; completed the Ansys acquisition in July 2025. Revenue is primarily from time-based and upfront licenses to semiconductor and electronics companies, with... Read more

$474.21+1.6% A.UpsideScore 4.9/10#70 of 80 Software - Infrastructure
Stop $440.59Target $481.18(analyst − 10%)A.R:R 0.1:1
Analyst target$534.65+12.7%26 analysts
$481.18our TP
$474.21price
$534.65mean
$404
$650

Sell if holding. Analyst target reached at $474.21 — A.R:R 0.1:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Weak overall score: 4.9/10. Chart setup: Death cross but MACD improving, RSI 73. Score 4.9/10, moderate confidence.

Passes 5/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 27d clear, semi cycle peak clear). Fails on weak momentum and favorable risk/reward ratio and death cross (50MA < 200MA). Suitability: moderate.

Thesis

Rewards
Strong earnings beat streak (3/4)
Risks
Analyst target reached - limited upside remaining
Weak overall score: 4.9/10
Expensive valuation

Key Metrics

P/E (TTM)74.0
P/E (Fwd)28.2
Mkt Cap$92.2B
EV/EBITDA62.4
Profit Mgn13.8%
ROE5.5%
Rev Growth65.5%
Beta1.15
DividendNone
Rating analysts31

Quality Signals

Piotroski F7/9

Options Flow

P/C0.67bullish
IV62%elevated
Max Pain$285-39.9% vs spot

Concentration Risks(10-K Item 1A)

  • MEDIUMCustomerrelatively small number of large customers
    10-K Item 1A: 'we depend on a relatively small number of large customers for a large portion of our revenues'

Material Events(8-K, last 90d)

  • 2026-04-20Item 5.02LOW
    Stockholders approved Synopsys Amended and Restated Equity Incentive Plan at April 16, 2026 Annual Meeting, adding non-employee directors as eligible. Routine compensation plan amendment.
    SEC filing →
  • 2026-02-19Item 5.02LOW
    Peter A. Shimer appointed to Synopsys Board and Audit Committee effective Feb 14, 2026. Former Deloitte COO and CFO; determined independent. No departures.
    SEC filing →

Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. Full disclaimer

Rating Breakdown

2 floor-breakers

Priced at a premium — multiples above sector norms. Needs delivery on growth + margins to justify.static

Pe
1.3
Ps
2.4
Peg Ratio
3.6
Forward Pe
4.4
Analyst Target
5.0
Forward P/E: 28.2xPEG: 3.19

Technicals below the gate floor. Component breakdown shows what dragged the score down.static

Support Resistance
2.5
Bollinger
2.9
52w Position
4.5
GatesMomentum 4.0<4.5A.R:R 0.1 < 1.5@spotDeath cross (50MA < 200MA)Insider activity: OKNo SEC red flagsNEWS EVENTS NONE RECENTEARNINGS PROXIMITY 27d clearSEMI CYCLE PEAK CLEARRecoverySuitability: Moderate
RSI
73 · Overbought
20D MA 50D MA 200D MADEATH CROSSSupport $386.59Resistance $502.28

Price Targets

$441
$481
A.Upside+1.5%
A.R:R0.1:1

Position Sizing

ConvictionNone
Suggested %0.5%
Max %1%
RegimeSteady

Risk Alerts

! Target reached (1.6% upside)
! Momentum score 4.0/10 — below 4.5 minimum
! Reward/Risk 0.1:1 at current price — below 1.5:1 minimum

Earnings

B
B
B
M
3/4 beats
Next Earnings2026-05-27 (27d)

Verdict History

reverse chrono — latest first
Loading history...
Verdicts are recorded on every nightly pipeline run. Rows capture transitions (verdict flips, score deltas ≥0.3, entry/TP/SL changes). Rows with a ▶ can be expanded to see the change reason. Aggregate cohort performance is tracked in the recommendation ledger.
Frequently Asked Questions
Is SNPS stock a buy right now?

Sell if holding. Analyst target reached at $474.21 — A.R:R 0.1:1 is below the 1.5:1 minimum. Reward from here is too thin for a buy — the engine flags exit. Additional concerns: Weak overall score: 4.9/10. Chart setup: Death cross but MACD improving, RSI 73. Prior stop was $440.59. Score 4.9/10, moderate confidence.

What is the SNPS stock price target?

Take-profit target: $481.18 (+1.6% upside). Prior stop was $440.59. Stop-loss: $440.59.

What are the risks of investing in SNPS?

Analyst target reached - limited upside remaining; Weak overall score: 4.9/10; Expensive valuation.

Is SNPS overvalued or undervalued?

Synopsys, Inc. trades at a P/E of 74.0 (forward 28.2). TrendMatrix value score: 3.3/10. Verdict: Sell.

What do analysts say about SNPS?

31 analysts cover SNPS with a consensus score of 4.0/5. Average price target: $535.

What does Synopsys, Inc. do?Synopsys provides EDA software, semiconductor IP, and simulation/analysis solutions used to design and verify chips...

Synopsys provides EDA software, semiconductor IP, and simulation/analysis solutions used to design and verify chips globally; completed the Ansys acquisition in July 2025. Revenue is primarily from time-based and upfront licenses to semiconductor and electronics companies, with roughly half from outside the US.

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