UPDATE: FBN Securities Downgrades Mellanox Technologies to Sector Perform on Lower Guidance
FBN Securities reduced its rating on Mellanox Technologies (NASDAQ: MLNX) from Outperform to Sector Perform and lowered its price target from $100 to $60.
FBN Securities commented, "We are lowering our PT from $100 to $60 to reflect the recent trend of disappointing news (remember that the stock declined from around $105 to the $70s at the time of its Oct. earnings call on concerns about weaker guidance and declining margins; it previously guided FQ4 revenue of $145-150M, lower than prior $157M consensus, and it previously guided FQ4 NG GM at 68.5-69.5%, below our prior 70.5% at the time). Now, the company is lowering the revenue (but not GM) guidance further still, and still expects NG opex growth of 6-8% Q/Q."
Mellanox Technologies closed at $61.19 on Wednesday.
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