Synopsys rises as Baird is pleased by Q4 results, 'surprisingly strong' outlook for 2023
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Synopsys (NASDAQ:SNPS) shares rose nearly 4% on Thursday after the semiconductor equipment company posted fourth-quarter results on Wednesday, prompting praise from investment firm Baird for the fourth-quarter results and its "surprisingly strong" 2023 outlook.
Analyst Joe Vruwink, who has an outperform rating and $444 price target on Synopsys (SNPS), noted that the company "did not let bulls down" even amid the moderating environment for the semiconductor industry, due in large part to its electronic design automation business, which rose 11% year-over-year. 
"Supporting the overall business is a continuation of robust design activity, with customers focused on preserving R&D labor forces and mindful of lengthy development cycles that support future new product launches," Vruwink wrote in a note to clients.
Vruwink added that Synopsys (SNPS) is better positioned now than in past cycles, given its product portfolio, including its Fusion Compiler as well as DSO.ai and the fact its customer count "more than doubled" in fiscal 2022 and now includes 7 of the top 10 spending customers. 
"We continue to like the [electronic design automation] names and view Synopsys as core holding," Vruwink explained.
Last month, Synopsys (SNPS) said that Shelagh Glaser had been appointed chief financial officer, replacing Trac Pham effective December 2, 2022.