UPDATE: Jefferies Initiates Coverage on Mellanox Technologies Awaiting Better Entry Point

In a report published Friday, Jefferies analyst James Kisner initiated coverage on Mellanox Technologies MLNX with a Hold rating and $40.00 price target. In the report, Jefferies noted, “We expect MLNX's superior Interconnect technology to be increasingly adopted as MLNX increases penetration of Cloud/Web 2.0 and as HPC/‘Big Data' analytics become part of the toolset of mainstream enterprises. However, in the near-term Street expectations and valuation for MLNX discount a revenue ramp in 2014 that is not riskless. We're inclined to wait for a better entry point.” Mellanox Technologies closed on Thursday at $38.59.