Why Shares in Synopsys Popped Higher Today
Shares in electronic design automation (EDA) company (NASDAQ: SNPS) were up by more than 5% at 10 a.m. ET today. The positive developments came after officials from China and the U.S. confirmed that a new trade framework had been agreed upon between the two countries.
A thawing in the trade war with China matters to Synopsys for two main reasons. First, the company was forced to suspend its third-quarter and full-year guidance after the U.S. Department of Commerce applied new export restrictions that impacted Synopsys' ability to sell solutions to China. Second, China's market regulator has postponed approval of a merger between Synopsys and Ansys.
Both issues are highly significant. In the first six months of its fiscal 2025, Synopsys generated almost 11% of its sales from China.
Source Fool.com
Synopsys Inc. Stock
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As a result the target price of 577 € shows a slightly positive potential of 4.76% compared to the current price of 550.8 € for Synopsys Inc..
