The Federal Trade Commission has announced that Synopsys and Ansys must divest specific assets to alleviate antitrust issues linked to their planned $35 billion merger. The divestiture aims to maintain healthy competition in various software tool markets essential for semiconductor and light simulation device design. These tools are crucial in manufacturing products like cars, smartphones, televisions, and cameras.
www.gurufocus.com, May. 28, 2025 –
In a move to safeguard consumers from inflated prices of high-tech components such as computer chips and LED screens, the FTC has proposed this order. Synopsys will transfer its optical software tools, which aid engineers in designing optical devices, and its photonic software tools, used for designing devices that utilize photons. Ansys will divest its PowerArtist tool designed for early-stage power consumption analysis of digital chips.
These divested assets will be acquired by Keysight Technologies (KEYS, Financial), ensuring that competition remains robust within the industries critical to modern technological advancements. This strategic move by the FTC ensures that digital product design markets continue to thrive, ultimately benefiting everyday consumers.
Based on the one-year price targets offered by 11 analysts, the average target price for Keysight Technologies Inc (KEYS, Financial) is $186.37 with a high estimate of $200.00 and a low estimate of $156.12. The average target implies an upside of 17.56% from the current price of $158.54. More detailed estimate data can be found on the Keysight Technologies Inc (KEYS) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, Keysight Technologies Inc's (KEYS, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Keysight Technologies Inc (KEYS, Financial) in one year is $166.80, suggesting a upside of 5.21% from the current price of $158.54. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Keysight Technologies Inc (KEYS) Summary page.
Release Date: May 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.