Synopsys stock trades at USD 425.76 as HSBC raises target

Published on 09/28/2026 at 14:41 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

HSBC upgraded Synopsys to Buy on September 25, 2026, lifting its target from USD 490.00 to USD 700.00. Q3 adjusted EPS reached USD 3.91.

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Synopsys stock (ISIN US8716071076) was last quoted at USD 425.76 on Nasdaq on September 25, 2026, with a daily gain of 0.20 percent. The latest analyst action came from HSBC, which upgraded the shares to Buy and raised its price target from USD 490.00 to USD 700.00 on September 25, 2026, according to 24/7 Wall St.

HSBC targets a royalty shift

HSBC analyst Frank Lee changed the rating from Hold to Buy and lifted the target by USD 210.00, a 42.86 percent increase from the prior target. The thesis centers on a possible shift toward royalty-based intellectual-property revenue, which could raise annual earnings growth from 7.00 percent to 28.00 percent through 2028, 24/7 Wall St. reported.

The valuation gap is substantial. HSBC's USD 700.00 target stands 64.42 percent above the September 25 price of USD 425.76, while the broader analyst consensus cited by MarketBeat was USD 561.00 on September 25, 2026.

Q3 revenue rose 42.40 percent

Synopsys reported fiscal Q3 2026 revenue of USD 2.48 billion, up 42.40 percent from USD 1.74 billion in fiscal Q3 2025. Adjusted EPS was USD 3.91 against consensus of USD 3.67, a USD 0.24 beat, while GAAP diluted EPS reached USD 2.84, according to SemiWiki.

Management's fiscal 2026 outlook calls for revenue of USD 9.69 billion to USD 9.74 billion and adjusted EPS of USD 15.04 to USD 15.10. Fourth-quarter guidance is USD 2.53 billion to USD 2.58 billion in revenue and adjusted EPS of USD 4.10 to USD 4.16, MarketBeat reported.

Stock remains below yearly high

Synopsys stock stood 21.07 percent below its 52-week high of USD 539.48 and 17.43 percent above its 52-week low of USD 362.55 on September 25, 2026. The session range was USD 424.21 to USD 445.92, and volume reached 2,171,555 shares.

The reference market value was USD 81.5 billion on September 25, 2026. For investors, the key tension is clear: quarterly growth and raised guidance support the earnings case, while the distance from the yearly high leaves valuation and execution as central market tests.