Synopsys Stock Gets an Upgrade. Why This Analyst Sees 69% Upside.

A business model transition might provide a much-needed earnings boost for Synopsys as it faces disruption from artificial intelligence, HSBC wrote Friday. HSBC upgraded Synopsys to Buy from Hold and raised its price target for the stock to $700 from $490, representing 69% upside from its closing price of $413.06 on Thursday. Analysts cited a decision by CEO Sassine Ghazi for the company to shift from a traditional “build once, sell many” licensing model to one that includes royalties.