Synopsys downgraded to Hold at HSBC on lack of full-year 2026 catalysts

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HSBC Global Investment Research has downgraded Synopsys Inc. (NASDAQ: SNPS) to “Hold” from “Buy,” citing limited near-term catalysts and mounting headwinds for 2026. The bank lowered its price target and expects 2026 to be a transition period, with growth primarily driven by the Ansys acquisition while core businesses face challenges like geopolitical uncertainty and resource reallocation towards AI. Synopsys’s Design IP segment is expected to remain muted, and visibility beyond next year is limited.

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