KeyBanc raised its price target on Synopsys (NASDAQ:SNPS) to $575 from $555 while maintaining an Overweight rating, citing a constructive risk-reward profile ahead of the company’s fiscal Q2 earnings report on May 28.
The firm expects results to be in line with or slightly ahead of consensus but believes investor focus will center on two key factors: management’s commentary on China exposure and the status of the Ansys acquisition. Confidence in both areas could serve as catalysts.
KeyBanc views current market expectations as overly cautious, suggesting that reaffirmed 2025 guidance—driven by strength in IP and hardware segments—could ease concerns about any softness related to China. The Ansys deal, if merely delayed to the second half rather than scrapped, would further support sentiment.
With investors still pricing in more downside than warranted, the firm sees Synopsys as positioned for outperformance and has raised its target to reflect continued confidence in the company’s execution and outlook.
