Synopsis has a business partner it can rely on. During last quarter, the company has renewed a significant multiyear agreement with Intel Corporation (NASDAQ:INTC). Synopsis also boasts a large semiconductor company which had been a competitor stronghold for years moved to Synopsis as their main partner. In newer industries, the tide lifts all boats, but in a mature industry, you’d be better off picking the leader.
What can you expect from Synopsys, Inc. (NASDAQ:SNPS)? The company is attractively valued, however, it operates in a sector that faces significant headwinds. Analysts’ mean target price for Synopsys is $41.17, a 13% upside from current levels. Its biggest client, Intel Corporation (NASDAQ:INTC), is having a good year, both as a company and as a stock. Synopsys, Inc. (NASDAQ:SNPS) could make it into the defensive part of your portfolio as we head into the post-quantitative easing environment.
Vladimir Zernov has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Vladimir is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article Go Defensive with this Tech Stock originally appeared on Fool.com is written by Vladimir Zernov.
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