UPDATE: Sterne Agee Initiates Coverage On Mellanox Technologies, Ltd. As All Focus Turns To Haswell Launch

In a report published Wednesday, Sterne Agee analyst Alex Kurtz initiated coverage on Mellanox Technologies, Ltd. MLNX with a Neutral rating and $46.00 price target. In the report, Sterne Agee noted, “We expect a major tailwind behind the Haswell launch starting this quarter, especially within the $11B HPC market that carries pent-up demand into 2H14. Yet, the key challenge we see with further upside in the near term is that the forward P/E could be capped near 20x ex cash (peak between 20x and 25x) and with potential earnings power of $2.20 in FY2015 (plus cash) yields a near-term upside case of ~$50. Given inherent risk with its OEM model, we are initiating with a Neutral rating, $46 PT.” Mellanox Technologies, Ltd. closed on Tuesday at $43.82.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: Analyst ColorInitiationAnalyst RatingsAlex KurtzSterne Agee
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!