Electronic design automation (EDA) and engineering simulation software company Synopsys (NASDAQ: SNPS) recently released a disappointing set of third-quarter earnings, resulting in a collapse in its share price. As ever, Wall Street analysts immediately rushed to lower price targets.
But here’s the thing. Generally, the adjusted price targets remain significantly above the current price. Of the 22 analysts covering the stock, 18 have “buy” or “outperform” ratings, while one has an “underperform” rating.
The price targets on the post-earnings analyst updates range from Piper Sandler’s $630 to Berenberg’s $500. This compares to the current price of almost $500 and a post-earnings price of below $390.