Synopsys receives HSBC upgrade to ‘Buy’ with 700 USD target

HSBC has upgraded its rating for Synopsys from ‘Hold’ to ‘Buy’, significantly raising its price target from 490 USD to 700 USD. This adjustment reflects a higher valuation of the company’s future earning potential.

Synopsys reported strong financial performance in its third quarter of 2026, with revenue increasing by 42.4 percent year-over-year, rising from 1.740 billion USD to 2.477 billion USD. Adjusted earnings per share also grew from 3.39 USD to 3.91 USD during the same period.

For the full 2026 fiscal year, the company projects revenue between 9.690 billion and 9.740 billion USD, with an adjusted EPS of 15.04 to 15.10 USD. While growth remains robust, the company noted that its forecasts assume existing US export controls and regulatory restrictions remain in place.