- The $35 billion Synopsys-Ansys merger faces delays from China's antitrust authority despite U.S. and European approval.
- Analysts set a one-year price target of $591.51 for Synopsys, implying a 19.50% increase from current levels.
- GuruFocus estimates a potential 26.42% upside for Synopsys based on GF Value metrics.
Merger Delayed: Chinese Antitrust Hurdles
The significant $35 billion merger between Synopsys (SNPS, Financial) and Ansys hit a roadblock as China's State Administration for Market Regulation has yet to give its nod. This delay is notable since both U.S. and European regulatory bodies have already granted their approval. The primary stumbling block appears to be the recent U.S. restrictions concerning the sale of chip design software to China. In response, Synopsys is actively engaged in negotiations to alleviate the concerns raised by Chinese regulators.
Wall Street Analysts Forecast
Analyzing one-year price targets from 21 financial analysts, Synopsys Inc (SNPS, Financial) is projected to reach an average price of $591.51. This estimation features a high of $707.78 and a low of $502.41, suggesting a possible upside of 19.50% from the present price of $494.99. Investors can find further detailed projections on the Synopsys Inc (SNPS) Forecast page.
The consensus from 21 brokerage firms assigns Synopsys Inc an average brokerage recommendation of 1.9, classifying it as "Outperform." Notably, this rating uses a scale where 1 indicates a Strong Buy and 5 indicates a Sell.
GuruFocus Valuation Estimates
According to GuruFocus estimates, Synopsys Inc (SNPS, Financial) holds an estimated GF Value of $625.75 over the next year. This represents a potential upswing of 26.42% from its current market price of $494.99. The GF Value is formulated by evaluating historical trading multiples, past business expansion, and future performance forecasts. For more exhaustive insights, visit the Synopsys Inc (SNPS) Summary page.
In conclusion, while regulatory hurdles pose a challenge to the Synopsys-Ansys merger, analysts and valuation metrics suggest promising growth potential for Synopsys, making it an intriguing prospect for investors.
