Synopsys was recently off $2.94, or 10.4%, to $25.36, amid a broad selloff in tech issues.
On Thursday, HSBC analyst Rohit Pandey lowered his rating on shares of Mountain View, Calif.-based Synopsys from overweight to neutral, citing the stock's crossing his $28 price target, as well as the company's third-quarter forecast falling short of his expectations.
Analysts at Needham, however, maintained their buy rating, while other analysts reiterated hold ratings.
Needham analysts Richard Valera and Andrew Spinola wrote Thursday that they like Synopsys for its strong cash flow, its margin expansion potential and the high percentage of revenue coming from backlog each quarter. Deutsche Bank analyst Tim Fox raised his target price from $25 to $27 and reiterated his hold rating.
Late Wednesday, the maker of design automation software for semiconductors beat analysts' second-quarter earnings expectations by posting 35 cents a share before items on revenue of $292.1 million.
For the third quarter, the company projected earnings before items of 28 cents to 31 cents a share -- below Street estimates of 33 cents a share -- on revenue of $295 million to $305 million.