UPDATE: Barclays Upgrades Mellanox Technologies

In a note released Monday, Barclays upgraded shares of Mellanox Technologies MLNX from Underweight to Underperform and raised the price target from $36 to $45.

The analysts at Barclays noted that the stock is "not cheap". However, they noted that the company has shown improved fundamentals, which have led to improved sentiment and provides support for near-term expectations to be exceeded.

Following the upgrade, shares of Mellanox have traded up ~1.3 percent.