Goldman Sachs Reaffirms Synopsys (SNPS) Buy Rating Amid Ansys Merger Uncertainty

Synopsys, Inc. (NASDAQ:SNPS) ranks among the best software stocks to buy right now. In a research note released on August 22, Goldman Sachs reaffirmed its Buy rating on Synopsys, Inc. (NASDAQ:SNPS) with a $700 price target. Although the firm anticipates that Synopsys will produce in-line underlying results, it advised caution regarding possible volatility associated with the Ansys integration. According to Goldman Sachs, market sentiment seemed to be “skewed slightly positive” in spite of earlier worries over China’s EDA export restrictions.

That said, Goldman Sachs expects that the Ansys merger dynamics may be unclear due to non-comparable reporting, mismatched quarters, and the fact that several analysts have not revised their expectations for the deal.

Despite the possibility of a turbulent quarter, the firm believes Synopsys, Inc. (NASDAQ:SNPS) will perform better due to increased cost synergies and the alignment of physical simulation and semiconductor technology.

Synopsys, Inc. (NASDAQ:SNPS) is a technology company that offers engineering solutions to help customers create and innovate AI-powered products ranging from silicon chips to entire systems.

While we acknowledge the potential of SNPS to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than SNPS and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.