Morgan Stanley raised its price target for Synopsys (SNPS) to $574. Its previous target was $550. The bank reiterated its Overweight rating. Analyst Lee Simpson cited the significant potential benefits Synopsys could realize from AI expansion.
Morgan Stanley said Synopsys’ current valuation does not fully reflect AI-driven growth in its total addressable market or the emergence of new consumption-based models.
Despite the positive outlook, Synopsys shares fell 0.8% in premarket trading following the announcement.