Synopsys posts strong growth but stock lags; $650 target by 2028 hinges on AI demand and Ansys deal success

Synopsys reported 42% revenue growth last quarter and raised its full-year guidance after integrating a $35 billion Ansys deal, yet its stock is down over 34% in the past year. Challenges include high debt from the Ansys acquisition, export controls affecting customers, and segment underperformance, causing market hesitation. Analysts see potential upside with a consensus price target of $564, while a bullish $650 target by 2028 depends on strong EPS growth, successful Ansys synergy, and stable export conditions. The stock currently trades at a discount to historical premium levels, suggesting room for recovery if risks subside.