Shares of Synopsys, the semiconductor design software leader, closed Friday’s session at $480.42, marking a gain of 2.28%. This upward movement was primarily fueled by a significant price target revision from the investment firm Loop Capital, which now sees the stock reaching $600.
Revised Target Highlights Integration Prospects
In a research note issued Friday morning, Loop Capital reaffirmed its Buy rating on Synopsys while raising its price objective from $570 to $600. The firm’s analysts expressed confidence in the company’s growth trajectory following its acquisition of Ansys, citing effective operational execution and the long-term value creation potential of the combined product suite. The strategic fusion of Synopsys’s core chip-design tools with Ansys’s simulation technology is viewed as a particularly compelling driver for future performance.
Market data appears to support this optimistic outlook. The short interest in Synopsys has declined to approximately 2.21% of its float, indicating that fewer market participants are betting against the company’s success. The recent share price appreciation seems to be supported more by genuine institutional accumulation than by short covering.
Should investors sell immediately? Or is it worth buying Synopsys?
Notable investment managers, including CMH Wealth Management and Westbourne Investments, have recently increased their holdings. Investors are interpreting the stock’s elevated valuation—trading at a P/E ratio of 58.21—as a sign of strong market belief in its growth prospects, especially within the context of AI-driven chip development.
Upcoming Milestone to Provide Integration Clarity
A key date for investors is February 25, 2026, when Synopsys is scheduled to report financial results for the first quarter of its fiscal 2026. This report will offer the first comprehensive look at the performance of the newly combined entity. Management has provided guidance for Q1, projecting revenue between $2.37 billion and $2.42 billion. Adjusted earnings per share are expected to land in the range of $3.52 to $3.58. This earnings release will be a critical test of whether the integration of the two business units is proceeding as planned.
From a technical perspective, the equity is approaching a test of significant resistance levels. A sustained breakout above $485 could pave the way toward the psychologically important $500 threshold. Loop Capital’s $600 price target implies a potential upside of roughly 25% from current trading levels.
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