Rosenblatt analyst Blair Abernethy has adjusted the price target for Synopsys (SNPS, Financial), reducing it to $625 from $660, while maintaining a Buy rating on its shares. This decision follows Synopsys' announcement of second-quarter results that met expectations and a reaffirmation of its growth forecast for the fiscal year 2025.
EDAs saw a notable decline of around 10% recently after news emerged about potential U.S. government restrictions on selling design tools to China. However, Synopsys management clarified during a company call that they have not yet received any formal notification of such measures affecting their operations, despite recognizing ongoing demand weaknesses in the Chinese market.
The firm has slightly revised its fiscal year 2025 projections and is taking a more cautious stance on growth expectations for fiscal year 2026, owing to continued challenges in China.
