Morgan Stanley lifts Synopsys price target to $574 on AI growth expectations

Morgan Stanley upgraded its outlook on Synopsys, raising the price target to $574 per share. The analyst cited the company’s AI-driven expansion of the electronic design automation market and a shift toward consumption‑based licensing. The firm maintained an Overweight rating as the stock slipped about 0.8% in pre‑market trading. The new target reflects a view that Synopsys is undervalued relative to its AI revenue potential.

The higher target suggests upside potential for investors, as the analyst now expects the market to re‑rate the stock if AI initiatives deliver revenue growth. Morgan Stanley’s note implies that the current price may not fully reflect the AI story, which could support future price appreciation.

  • Prior price target is reported as $500 in most sources but $550 in material 3.

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