Synopsys (SNPS) has acquired Code Dx for an undisclosed amount. Synopsys is an electronic design automation company that focuses on silicon design and verification, silicon intellectual property and software security and quality.
Code Dx is the provider of an application that automates and accelerates the discovery, prioritization, and remediation of software vulnerabilities.
The terms of the deal have been kept under wraps. The acquisition expands Synopsys’ portfolio of application security tools and services.
Synopsys Software Integrity Group’s general manager Jason Schmitt said, “While robust security testing is vital to securing modern software, it often produces large amounts of vulnerability data that is difficult to manage. Code Dx enables our customers to optimize and harness the breadth of our application security portfolio, along with third-party tools, by aggregating, correlating, and prioritizing security testing results based on risk.” (See Synopsys stock analysis on TipRanks)
On June 1, Rosenblatt Securities analyst John McPeake initiated coverage of the stock with a Buy rating and a price target of $302 (18.4% upside potential).
McPeake said, “We think ballooning chip and packaging complexity, increasing levels of software on the chip, new vertical markets, and Synopsys’ AI-enabled Fusion Compiler have positioned the company for an inflection in demand and revenue growth.”
The consensus among analysts is a Strong Buy based on 4 unanimous Buys. SNPS average analyst price target of $318.3 implies a 24.8% upside potential. Shares have gained 34.5% over the past year.
Synopsys scores a “Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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