UPDATE: D.A. Davidson Raises PT on Mentor Graphics on Continued Emulation Success

In a report published Thursday, D.A. Davidson analyst Thomas Diffely reiterated a Buy rating on

, and raised the price target from $25.00 to $26.00. In the report, D.A. Davidson noted, “Our checks indicate that MENT's emulation business continues to exceed expectations and is on track to not only drive strong sequential growth in 2H but should deliver an even stronger 2014. Recall that segment bookings during 1H were so strong that incoming orders in the first two quarters of this year were nearly equivalent to the total emulation business in all of last year. Importantly, MENT is gaining share, as 4 of the top 5 emulation bookings last quarter were from new customers. Overall, the ~$350 million emulation market remains in a secular growth trend and could continue to see above average growth over the next several years, providing a tailwind for MENT and Cadence (CDNS* - BUY - $13.50), who both hold dominant market share positions.” Mentor Graphics Corporation closed on Wednesday at $22.86.