SNPS

Synopsys, Inc.

TMT


Presented:06/11/2020
Price:$179.52
Cap:$27.07B
Current Price:$517.56
Cap:$79.50B

Presented

Date06/11/2020
Price$179.52
Market Cap$27.07B
Ent Value$24.17B
P/E Ratio58.37x
Book Value$28.33
Div Yield0%
Shares O/S150.79M
Ave Daily Vol1,217,630
Short Int1.47%

Current

Price$517.56
Market Cap$79.50B
Synopsys, Inc. engages in the provision of software products and consulting services in the electronic design automation industry. The firm operates through the following segments: Semiconductor and System Design, and Software Integrity. It provides intellectual property products, which are pre-designed circuits that engineers use as components of larger chip designs, as well as software and hardware that are used to develop the electronic systems that incorporate chips and the software that runs on the circuits. It also offers technical services to support the customers in industries such as electronics, financial services, energy, and industrials for developing chips and electronic systems. The company was founded by Aart J. de Geus, Bill Krieger, Dave Gregory, and Rick Rudell in December 1986 and is headquartered in Mountain View, CA.

Publicly traded companies mentioned herein: Cadence Design Systems Inc (CDNS), Synopsys Inc (SNPS)

Highlights

The presenter is long shares of Synopsys Inc (SNPS), which provides electronic design automation software products used to design and test integrated circuits. He expects a demand tailwind as the amount of content increases in cars, autonomous vehicles, cellphones, and 5G devices. In the meantime, SNPS should be largely unaffected by COVID-19. This leads the presenter to believe the company will maintain its track record of beating earnings estimates. Based on a multiyear outlook of mid-teen% EPS growth and potential multiple expansion, he sees strong upside from the current ~$180 share price.

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Idea Discussion

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