Morgan Stanley Just Upgraded Synopsys Stock. Here's Why.

Synopsys reported Q3 FY2026 revenue of $2.48B, up 42.4% YoY, and raised full-year guidance. Analysts at 24/7 Wall St. predict a 25% upside to $496.97, citing strong fundamentals and AI-driven growth. However, shares are down 15.45% YTD due to China-related challenges and high valuation.

Morgan Stanley upgraded Synopsys (SNPS) to Overweight, maintaining a $500 price target. The stock is trading at $396.11, which is 39.9% undervalued according to its GF Value™ of $659.20. Synopsys has a GF Score™ of 88/100, indicating strong growth potential but concerns about valuation. Insider activity shows significant selling, with $40.7 million in sales over the last three months.

Morgan Stanley upgraded Synopsys (SNPS) and downgraded Infineon (IFNNY), citing a need for selectivity in the semiconductor sector. The firm expects strong AI demand to support the industry.

Morgan Stanley upgraded Synopsys to Overweight, citing attractive valuation and growth opportunities. The firm kept its $500 price target. It downgraded Infineon to Equal Weight and lowered its target to €65. ASML's target was cut to €1,700. The semiconductor sector has seen volatility, with Morgan Stanley highlighting potential risks ahead.

Synopsys (SNPS) reported Q3 FY2026 earnings with revenue of $2.48B, up 42.4% YoY, and EPS of $3.91, beating estimates. The company raised its full-year outlook. Analysts maintain 'Buy' ratings with price targets up to $633, citing long-term growth potential in semiconductor design.

Synopsys (SNPS) shares fell 5.9% after reporting Q3 revenue of $2.48B and EPS of $3.91, both above guidance. The company raised full-year targets to $9.715B revenue and $15.07 EPS, but investors reacted negatively due to modest outlook increases, restructuring costs, and acquisition-related expenses. Insider sales and mixed hedge fund activity were also noted.