Needham upgraded Synplicity (SYNP
) to buy from hold, citing the software products maker's quarterly results.
Analyst Rich Valera says the company's share prices have dropped 30% amid lighter than expected forecasts for the first half of 2006. But Valera believes the price decline more than accounts for the company's modest near-term revenue growth outlook, and that the shares should perform well as revenue visibility improves in the second half of 2006. At Friday's close, the shares traded at about 15 times his 31 cents 2007 earnings per share (EPS) estimate. He initiates a $9 stock price target.