Robertson Stephens cut the estimates and price target on Synopsys (SNPS ).
Analyst John Barr says Q3 were "okay," but adds that management guided Q4 bookings down to about 10% light of his estimate. He thinks the shortfall is due to weakness in the semiconductor sector, and is not a company-specific problem. He notes the company has a strong new product cycle, saying pre-market trading (in the $45.50 area) reflects the fact that Q4 bookings will be off by 10%, hence investors are taking the stock down by about 10%.
He's looking for Synopsys to rebound in 2002, considering the company's guidance for 2002, which is largely unchanged. Barr reiterates his buy rating, cut the $0.38 Q4 EPS estimate to $0.36 and cut the $73 target to $63.