Weak Earnings and Downgrades Signal Caution for Synopsys (SNPS)

about 2 months ago

Alexis Christoffers

"Synopsys, ticker SNPS, doing really quite the opposite of Oracle. Shares down about 33% at the moment – set for its biggest drop since 2004 – largely due to a weak set of earnings and disappointing revenue from design IP. Price targets have been cut to $550 from $660 at Needham and similarly from $650 at Stifel, with analysts downgrading the stock to neutral citing a lack of forward visibility."

Synopsys (SNPS) is under significant pressure due to earnings misses and a weak revenue outlook in its core design IP segment, compounded by export restrictions in China. With shares down roughly 33% and price target revisions from leading firms (Needham and Stifel) to $550, investors might consider a cautious stance or look to short the stock given the steep decline and lack of forward clarity.

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