Wunderlich Securities Reiterates Hold, $36 Target on Mellanox
Wunderlich Securities maintains its Hold rating and $36 price target on Mellanox (NASDAQ: MLNX) as large deals drive upside outlook for the company.
Wunderlich Securities says, "Mellanox (MLNX) reported 4Q11 EPS of $0.31 on revenue of $72.7 million. EPS were $0.02 ahead of consensus while revenue was approximately $1.3 million ahead of estimates for the quarter. Revenue upside in the quarter was underscored by strong adoption of the company's Ethernet and 56 Gb/s InfiniBand products. Management provided 1Q guidance of $81-$82 million, significantly higher than consensus estimates. We are increasingly favorable in our stance, but maintain our Hold rating and $36 price target on MLNX shares."
MLNX closed at $31.16 a share yesterday.
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