(SNPS) Synopsys, Incorporated – Bear of the Day

December 15th, 2009

Synopsys, Inc. (SNPS) delivered mediocre third quarter results, with below-par operating performance. The 2010 guidance does not reflect any major growth. Although Synopsys is gaining traction from new products, acquisitions, and new EDA partnerships, we believe these are unlikely to show results in the near term.

We believe Synopsys’ time-based license model has good visibility and it has a strong balance sheet. On the other hand, the semiconductor industry has yet to stabilize and generate demand.

Synopsys is facing customer concentration risk. The industry-wide weakness is impacting its core business. We therefore downgrade the stock from Neutral to Underperform.

Zacks Investment Research

More on this topic (What's this?)
Can Synopsys rise from the dead? (Trade Radar, 12/18/09)
Read more on Synopsys at Wikinvest


Similar Posts: | | Technical & System Software | Technology

RSS feeds: SNPS | Synopsys Inc. | Technical & System Software | Technology |

Other Posts by vitalstocks | RSS Feed for this author

Post a Response

You must be logged in to post a comment.