KeyBanc Raises Synopsys (SNPS) PT to $660 Following Strong Q2 Results, Ansys Deal

Synopsys Inc. (NASDAQ:SNPS) is one of the best QQQ stocks to buy right now. On September 3, KeyBanc analyst Jason Celino raised the firm’s price target on Synopsys to $660 from $610, while keeping an Overweight rating on the shares ahead of quarterly results. This will be the first quarter at the company where it will report its combined financials and guidance, inclusive of the recently closed Ansys deal. KeyBanc expects Ansys to contribute ~$100 million in Q3 2025, and ~$750 million in FY2025.

Earlier this year, Synopsys reported a revenue of $1.6 billion in Q2, which was a 10% increase year-over-year. The company’s backlog grew by $400 million quarter-on-quarter and reached $8.1 billion. As of the end of the quarter, Synopsys had $14.3 billion in cash and short-term investments and $10.1 billion in debt.

Design Automation revenue particularly reached $1.12 billion, which marked a 6% year-over-year increase. The Design IP segment saw a 21% revenue increase and made $492 million. This growth was attributed to strong demand for high-speed SerDes IP and other interface IP. Synopsys generated ~$220 million in free cash flow during the quarter.

Synopsys Inc. (NASDAQ:SNPS) provides electronic design automation software products used to design and test integrated circuits. It operates in 2 segments: Design Automation and Design IP.

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