Synopsys To Repurchase $100M In Stock; Street Remains Bullish


Synopsys announced an accelerated share repurchase (ASR) plan with Mizuho Markets Americas LLC to repurchase stock worth $100 million. The electronic design automation company closed over 2% higher on Monday.

Per the ASR program, Synopsys (SNPS) said that it will receive an initial delivery of about 315,000 shares on or before May 14.

Synopsys reported better-than-expected 1Q results in Feb., wherein EPS of $1.52 topped analysts’ estimates of $1.47 and revenues of $970 million exceeded the consensus estimate of $958.8 million. (See Synopsys stock analysis on TipRanks)

Following the impressive results, Credit Suisse analyst John Pitzer raised the stock’s price target to $300 (15.3% upside potential) from $265 and maintained a Buy rating. The analyst believes that there are multiple drivers to EDA [electronic design automation], which would support a premium to long-term Semi CAGR of 6%-8%.

Meanwhile, the Street has a Strong Buy consensus rating on the stock based on 9 Buys and 1 Hold. The average analyst price target of $318.89 implies upside potential of about 22.6% to current levels. Shares have gained 108.8% in one year.

On TipRanks’ Smart Score ranking, Synopsys gets a 9 out of 10, suggesting that the stock is likely to outperform market expectations.

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