• Wells Fargo analyst Gary Mobley maintains Synopsys Inc (NASDAQ: SNPS) with an Overweight and lowered the price target from $425 to $400.

• Ahead of Synopsys' October quarter EPS print, he re-rated the stock.

• He slashed his price target to be more in line with their peers.

• He believes SNPS should command a similar (or slight premium) valuation to peers as the company's forward-three-year EPS CAGR of ~15% is at or slightly above peers.

• He believes Synopsys will post a beat-and-raise quarter and guide.

• While there is some investor concern about Synopsys' China exposure and exposure to the semi-cycle, he still thinks it is an excellent time to be an EDA company, with multiple secular tailwinds driving growth.

• The tailwinds included fragmentation of the chip design industry and chip design teams taking more significant deals.

• Price Action: SNPS shares traded lower by 0.37% at $323.62 on the last check Tuesday.

Latest Ratings for SNPS

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