Markets & Finance

SG Cowen Downgrades Synopsys to 'Outperform'

SG Cowen downgraded Synopsys (SNPS) to outperform from strong buy.

Analyst Raj Seth says he downgraded as the first quarter showed light bookings, and 2004 is looking back-end loaded. Seth says the company's announcement of its acquisition of Monolithic System Techonologies is quite expensive, and implies a big revenue multiple, which is dilutive to Synopsys.

Seth cut the $1.54 fiscal 2004 (Oct.) earnings per share estimate to $1.37, largely on higher costs associated with the acquisition. He says while expensive, the deal with Monolithic is strategically sound as the company has good technology. He remains optimistic about a pick-up in electronic design automation, which tends to be a late-cycle event.

American Apparel's Future

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

Sponsored Financial Commentaries

Sponsored Links

Buy a link now!

blog comments powered by Disqus