Synopsis Announces $175M Share Repurchase Program, Collaboration with Samsung

Synopsis, Inc. (SNPS) has signed an accelerated share repurchase agreement with Mizuho Markets Americas. Synopsis, a U.S.-based electronic design automation company, will repurchase its shares worth $175 million. Also, the company announced a collaboration with Samsung’s System LSI Business.

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According to the share repurchase agreement, Synopsys will buy back approximately 521,000 shares on or before August 18, 2021. The exact number of shares repurchased will depend on Synopsys’ weighted average share price during the repurchase period. (See SNPS stock chart on TipRanks)

Besides the buyback plan, the company also announced a collaboration with Samsung on Thursday. Synopsis’ PrimeShield innovative technology solutions will be utilized by Samsung’s System LSI Business to improve design resilience in next-generation mobiles, 5G applications, and automotive applications. The financial terms of the deal have been kept under wraps.

Jacob Avidan, SVP of engineering for the Digital Design Group at Synopsys, commented, “Robustness has become an essential design quality metric, in addition to power, performance, and area, for our leading-edge customers, such as Samsung,”

He further added, “PrimeShield continues its technology advancements with machine learning-driven robustness analysis and optimization to improve design immunity to variation. As part of the Fusion Design Platform, it effectively helps deliver superior power and performance along with cost-effective designs for our customers.”

Rosenblatt Securities analyst John McPeake recently initiated coverage on Synopsys with a Buy rating and a price target of $302 (10.3% upside potential).

McPeake believes that Synopsis is well-positioned for “inflection” in demand and revenue growth based on “ballooning” chip and packaging complexity, higher levels of software on the chip and new vertical markets, and the company’s AI-enabled Fusion Compiler.

Overall, the stock has a Strong Buy consensus rating based on 4 unanimous Buys. The average Synopsys analyst price target of $318.33 implies 16.3% upside potential from current levels. Shares of SNPS have jumped 44% over the past year.