Synopsys' (NASDAQ:SNPS) Bookings, Acquisitions Position Them for Strong 2011

Synopsys (NASDAQ:SNPS) has somewhat underperformed in 2010, but increased bookings in the third quarter and several acquisitions should have them performing stronger in 2011.

Needham said, "While SNPS shares have traded sideways in 2010 (which is looking better in light of the recent semi swoon) as the company suffered through negative y/y revenue comparisons and in-line results, we think the bookings improvement seen by the company in 3QF10, combined with the expected contribution from numerous acquisitions, position the company for a solid resumption in top and bottom line growth and better stock performance in F2011."

They maintain a "Buy" rating on Synopsys, which closed at $25.85, dropping $0.66, or 2.49 percent. Needham raised their price target on them from $29 to $30.