Synopsys Inc. (SNPS) is set to report fiscal fourth-quarter earnings Wednesday after the bell, and at least one analyst thinks the worst might be behind the semiconductor design software company.

Rosenblatt Securities analyst Blair Abernethy upgraded Synopsys from Neutral to Buy, though he trimmed his price target from $605 to $560. The move comes after the stock has taken a beating—down nearly 30% since the company missed third-quarter expectations and cut guidance.

The rating change reflects expectations for "further clarity on its IP business, China market recovery, and early traction with the Ansys business," Abernethy wrote in his upgrade note. After last quarter's stumble, the company is likely to deliver results that roughly meet expectations this time around, with the IP segment and China market showing potential signs of stabilization over the coming quarters.

As for the numbers, Abernethy expects Synopsys to report total revenues of $2,249.6 million, slightly above the consensus estimate of $2,247.3 million. He's projecting non-GAAP operating margins of 36.3% and earnings of $2.80 per share, compared to consensus figures of 35.7% and $2.78 per share, respectively.

Looking ahead to the full fiscal year 2025, the analyst anticipates revenue growth of 15% to $7.049 billion, in line with consensus expectations.

Shares of Synopsys traded down 0.05% at $465.66 on Tuesday.