Synopsys Inc. stock gains after Wells Fargo raises price target to USD 475

Synopsys Inc. stock (ISIN US8716071076) is trading near USD 393 on Nasdaq as of September 10, 2026, after a fresh analyst upgrade highlighted upside potential from current levels. According to GuruFocus on September 10, 2026, Wells Fargo raised its rating on Synopsys from Equal-Weight to Overweight and lifted the price target to USD 475.

Wells Fargo upgrade sets the tone

The Wells Fargo call is the key catalyst for Synopsys Inc. stock on September 10, 2026. As GuruFocus reports, the bank now sees Synopsys benefiting from strong AI-driven demand growth ahead of its fiscal 2027 analyst day and has raised the target price to USD 475 from a previously lower level. According to CNBC on September 10, 2026, Wells Fargo argues that improving AI demand momentum and accelerating results into fiscal 2027 can drive the shares higher.

The upgrade comes after a period of weaker share performance. On September 10, 2026, GuruFocus noted that Synopsys shares had fallen 16.3 percent year to date and 34.9 percent over the past twelve months, with the current price at USD 393.22. In that context, the Wells Fargo target of USD 475 implies around 20.8 percent upside from the USD 393.22 level if achieved, underlining the bank's more constructive view.

Valuation metrics and analyst consensus

Beyond the single upgrade, valuation metrics and broader analyst consensus provide additional context for Synopsys Inc. stock. According to GuruFocus on September 10, 2026, a discounted cash flow model based on earnings points to an intrinsic value of USD 409.79 per share, only modestly above the current price and implying a margin of safety of 4.0 percent. A discounted cash flow model based on free cash flow yields an intrinsic value of USD 343.93, indicating a negative margin of safety of 14.3 percent versus the USD 393.22 market price.

The same analysis highlights a GF Value metric of USD 656.24 for Synopsys as of September 10, 2026, suggesting that the shares are significantly undervalued by 40.1 percent at the USD 393.22 level. According to MarketScreener on September 10, 2026, the average analyst price target stands at USD 544.97, roughly 38.6 percent above the latest closing price of USD 393.22. That gap between current trading levels and the average target is a key quantified comparison for investors assessing upside potential.

Analyst consensus also appears supportive. As MarketScreener reports, the average recommendation on Synopsys as of September 10, 2026 is a Buy based on 25 published analyses. Combined with Wells Fargo's newly positive stance, that suggests that despite the stock's drawdown, the sell-side community largely sees Synopsys as a long-term beneficiary of structural trends such as AI and semiconductor design complexity.

Share performance and technical context

The Wells Fargo upgrade arrives against a volatile price backdrop for Synopsys Inc. stock. GuruFocus on September 10, 2026 states that the shares were down 16.3 percent year to date and 34.9 percent over the past year at the USD 393.22 price point. According to MarketScreener, the latest closing price on Nasdaq on September 9, 2026 was USD 393.22, with the five-day variation and year-to-date variation both in negative territory.

This means investors are looking at a stock that trades materially below the average analyst target and the GF Value estimate but still above at least one DCF-based free cash flow valuation. The spread between the USD 393.22 market price and the USD 544.97 analyst average target, as well as the GF Value of USD 656.24, quantifies the perceived upside embedded in consensus models. At the same time, the negative performance over the past year and the modest margin of safety in one of the DCF scenarios highlight the risks if earnings or cash flows fail to meet those expectations.

Synopsys stock price as of latest close

For investors tracking day-to-day levels, Synopsys Inc. stock closed at USD 393.22 on Nasdaq on September 9, 2026, according to data cited by MarketScreener. That closing level serves as the reference price in this article. Market capitalization figures in the available sources are tied to that price level, placing Synopsys firmly among the larger constituents of the Nasdaq and S&P 500 technology cohort as of early September 2026.

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