Synopsys Shares Rise After Upgrade From HSBC

Analysts cover five stocks: Genius Sports (GENI) with a $8 target, CF Industries (CF) with a $162 target, 3M (MMM) upgraded to Hold with a $171 target, Nike (NKE) downgraded to Sell with a $30 target, and Synopsys (SNPS) upgraded to Buy with a $700 target. Analysts cite growth, valuation, and market conditions as key factors.

Synopsys Inc. (SNPS) rose after HSBC upgraded it to Buy with a $700 target, citing AI-driven growth. HSBC expects Synopsys to shift from moderate to high-growth, with EPS of $20.01 for 2027. Other analysts also raised targets, following strong Q3 results and raised guidance. Synopsys is pivoting to royalty-based revenue and AI integration in semiconductor design.

HSBC upgraded Synopsys to Buy and set a $700 price target, citing a shift to royalties and AI-driven demand. The target is 60% above current levels and highest on Wall Street. Synopsys reported strong Q3 earnings and raised its full-year outlook.

Synopsys (SNPS) stock rose 5% then dropped 4% after Q3 earnings beat expectations, with 42.5% sales growth and 89% GAAP earnings increase. CEO Sassine Ghazi cited AI chip complexity driving demand. Analysts upgraded SNPS, with HSBC setting a $700 target based on non-GAAP earnings.

HSBC upgraded Synopsys (SNPS) to Buy with a $700 price target, citing a potential shift in business model that could boost earnings growth to 28% through 2028. Synopsys reported 42% revenue growth and a $10.9B backlog last quarter, and has a new AI partnership with TSMC. Seventeen analysts raised EPS estimates in the past 30 days, with HSBC's target 28% above the Street consensus.

Synopsys (SNPS) stock rose 1.74% after HSBC upgraded it to Buy from Hold, raising the 12-month price target to $700 from $490. Analyst Stephen Bersey cited AI-driven growth and improved risk-reward profile, noting the company's shift to high-growth driven by AI advancements in chip design.