SNPS - Synopsys Hits Record Backlog In Q4 Analysts Elevate Price Targets Citing Fundamental Strength | Benzinga
Needham analyst Charles Shi reiterated a Buy rating on Synopsys, Inc (NASDAQ: SNPS), raising the price target to $660 from $500.
Synopsys recently posted street-beating performance in Q4, where quarterly revenue was $1.599 billion, up approximately 25% year over year.
Synopsys provided an FY24 outlook that stipulates 13% revenue growth and ~200bps of operating margin expansion.
The analyst sees Synopsys, as the leading company in EDA and IP, in an enabling role for a new breed of semiconductor startups, particularly artificial intelligence (AI) startups, at the turn of the decade.
Shi notes that the $8.6 billion backlog is a new record for SNPS, and the implied booking is likely the second highest in history.
The strong backlog increase in the fourth quarter suggests that ...