UPDATE: J.P. Morgan Raises PT on Mentor Graphics to $16.50 (MENT)

J.P. Morgan is out with its report on Mentor Graphics (NASDAQ: MENT), raising its PT from $16 to $16.50.

In a note to clients, J.P. Morgan writes, "Strong 4Q11 results capped a year of strong contract renewals in our opinion. But as investors' focus shifts to FY12, we estimate the pipeline of contract renewals will be smaller based on FY09's $108M decline in system and software, limiting upside to estimates, in our opinion. That said, we feel Carl Icahn's 14.9% ownership will provide support for the stock, allowing MENT to perform in line with our coverage, hence our Neutral rating. We are tweaking our December 2011 price target to $16.50 based on 14x our revised FY13 EPS of $1.18, which we are adjusting solely for the convertible bond offering."

Shares of MENT closed Wednesday at $14.49.