UPDATE: Clal Finance Downgrades Mellanox Technologies to Market Perform Post Sell-Off
Clal Finance reduced its rating on Mellanox Technologies (NASDAQ: MLNX) and removed its previous $115 price target.
Clal Finance noted, "Despite the sharp sell off in the stock, we are downgrading our recommendation to Market Perform, from Buy, and withdrawing our price target (previously $115) following the severe warning regarding Q4 revenues and the concern that the weakness will continue in the coming quarters. In our opinion, the current weakness in Mellanox is linked to the marco environment and doesn't change Mellanox's technological differentiation, and what are its main growth drivers – Cloud Computing, Web 2.0 and Data Storage."
Mellanox Technologies closed at $52.31 on Friday.
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Tags: Clal Finance