Synopsys, Inc. (SNPS), Mentor Graphics Corp (MENT): Go Defensive with this Tech Stock

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.

Bottom line

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.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.