Synopsys (SNPS) has won over Paul Wick, managing partner of J&W Seligman and head of Seligman Technology Group. "This is one of the most disruptive tech markets I've ever seen," says Wick, who pioneered tech mutual funds. But the disruption can produce opportunities like Synopsys, whose share price has fallen from 28 to 16. It makes software used to design electronic items like semiconductors. For all the fear about consumers, Wick doesn't believe the end buyer of Synopsys' clients' goods is in too bad shape. Adds Wick, "This is the ultimate defensive stock to the consumer electronics and computer industry." About 90% of Synopsys' revenue comes from a "visible" backlog of orders, which alleviates some pressure on 2008 sales. He believes Synopsys' earnings will grow 10% to 20% a year over the next three to five years as profit margins swell to 25% in 2009 from 23.5% this year. He thinks the Street's consensus earnings-per-share estimate of $1.67 is too low; he looks for $1.90 a share. The stock, says Wick, has the potential to hit 21. And with $6 a share in cash, he doesn't understand why more value investors haven't hopped on board yet.

Synopsys (SNPS), he says, has been beating numbers and raising guidance, but the stock has gone nowhere.

Synopsys (SNPS) was upgraded from Hold to Buy, Deutsche Bank said. $32 price target. Company posted a strong quarter, and margins and operating cash flow should continue to grow. Estimates also raised.

His biggest position is Synopsys (SNPS), maker of electronic-design-automation software; he notes that it recently signed its biggest deal ever, a five-year, $500 million pact with Intel. Synopsys has 90% recurring revenue. As a result, he contends, it's unlikely ever to blow up.

Unbelievable margin leverage in 08

own

Downgraded by HSBC Securities from Overweight to Neutral

The company is a clear leader in a strong field, and its stock, thanks in part to the recent drubbing of tech shares, looks ripe for the buying.

Says Yang Lie of Third Avenue Funds: "This is a very well financed company." Another big investor thinks it's worth at least 25% more than the current stock price.

Predictable revenue and improving operating margin