11:03 AM EDT, 08/11/2025 (MT Newswires) -- Synopsys' ( SNPS ) $35 billion acquisition of Ansys (ANSS) is poised to bring cost savings that "appear achievable" and suggest earnings accretion, Morgan Stanley said Monday in a report.

Synopsys ( SNPS ) expects estimated cost synergies of $400 million by the third year of the merger, driven by reductions in combined selling, general and administrative expenses, facility closures and increased automation, the report said.

Pro forma earnings for the combined entity for fiscal 2026 may be around $19 a share, implying 16% to 17% accretion before factoring in any revenue synergies, Morgan Stanley said.

In fiscal Q3 results due Sept. 9, investors may focus on bookings, full-year sales guidance, core electronic design automation growth and signs of recovery in China, the report said.

Morgan Stanley raised the price target on Synopsys ( SNPS ) stock to $715 from $540 and maintained its rating at overweight.

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