Why Shares in Synopsys Tumbled This Week
Shares in (NASDAQ: SNPS) declined by almost 27% in the week through Friday morning. The move comes after the company's disappointing third-quarter earnings report revealed some significant near-term issues that the company needs to overcome.
The bad news centers on the company's smaller design intellectual property (IP) segment, which provides the building blocks for chip design.
Synopsys' primary business is electronic design automation (EDA), which encompasses software solutions that help customers design and test chips. The company recently made a transformative deal to buy engineering simulation and analysis company Ansys, with which it can add the capability to test the results of what's designed through its EDA solutions, the so-called "silicon-to-systems" approach. That business (which now includes Ansys) is doing fine, with 23.5% year-over-year growth in the third quarter.
Source Fool.com
Synopsys Inc. Stock
The stock is one of the favorites of our community with 35 Buy predictions and 2 Sell predictions.
As a result the target price of 553 € shows a positive potential of 46.32% compared to the current price of 377.95 € for Synopsys Inc..
