Goldman Sachs Reaffirms Synopsys (SNPS) Buy Rating Amid Ansys Merger Uncertainty

Synopsys, Inc. (NASDAQ:SNPS) ranks among the best software stocks to buy right now. In a research note released on August 22, Goldman Sachs reaffirmed its Buy rating on Synopsys, Inc. (NASDAQ:SNPS) with a $700 price target. Although the firm anticipates that Synopsys will produce in-line underlying results, it advised caution regarding possible volatility associated with the Ansys integration. According to Goldman Sachs, market sentiment seemed to be “skewed slightly positive” in spite of earlier worries over China’s EDA export restrictions.

That said, Goldman Sachs expects that the Ansys merger dynamics may be unclear due to non-comparable reporting, mismatched quarters, and the fact that several analysts have not revised their expectations for the deal.

Despite the possibility of a turbulent quarter, the firm believes Synopsys, Inc. (NASDAQ:SNPS) will perform better due to increased cost synergies and the alignment of physical simulation and semiconductor technology.

Synopsys, Inc. (NASDAQ:SNPS) is a technology company that offers engineering solutions to help customers create and innovate AI-powered products ranging from silicon chips to entire systems.

While we acknowledge the potential of SNPS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.