Key Points:
- Synopsys (SNPS, Financial) secures conditional approval from China for its $35 billion acquisition of Ansys (ANSS), enhancing its foothold in the chip-design software industry.
- Ansys shareholders will receive $197 in cash plus 0.3450 Synopsys shares per share, under the terms of the acquisition agreement.
- Wall Street analysts set an average price target of $593.51 for Synopsys, reflecting a potential upside of 6.12%.
Synopsys (SNPS) has successfully gained conditional approval from China's market regulator for its landmark $35 billion acquisition of Ansys (ANSS). This regulatory green light paves the way for Synopsys to bolster its dominance in the chip-design software sector. According to the deal, Ansys shareholders will be awarded $197 in cash along with 0.3450 shares of Synopsys for each Ansys share they hold.
Wall Street Analysts' Projections
Wall Street analysts have projected a range of price targets for Synopsys Inc (SNPS, Financial) over the next year. According to insights from 21 analysts, the average target price is set at $593.51, with an optimistic high of $658.01 and a conservative low of $520.00. This average target suggests a promising upside of 6.12% from the current trading price of $559.28. For an in-depth view of these predictions, visit the Synopsys Inc (SNPS) Forecast page.
Furthermore, the firm's recommendation rating, aggregated from 22 brokerage firms, stands at 1.9. This indicates an "Outperform" verdict on the recommendations spectrum, where 1 is a Strong Buy and 5 is a Sell.
GuruFocus Analysis and Insights
Delving into GuruFocus's in-depth valuation metrics, the estimated GF Value for Synopsys Inc (SNPS, Financial) in the upcoming year is $631.59. This valuation suggests a substantial upside potential of 12.93% from its current market price of $559.28. The GF Value is meticulously calculated based on Synopsys's historical trading multiples, past business growth, and projected future business performance. Investors can explore more detailed information and analysis on the Synopsys Inc (SNPS) Summary page.
