Summit Research, Credit Suisse Analysts Comment On Mellanox Technologies Following Earnings

Late Wednesday, Mellanox Technologies, Ltd. MLNX reported fourth-quarter financial results, beating top and bottom line estimates.

For the fourth quarter, Mellanox reported EPS of $0.59 and revenue of $141.12 million.

Following the announcement, analysts at Summit Research and Credit Suisse offered commentary on Mellanox.

Credit Suisse analyst John Pitzer reiterated the Neutral rating and $50 price target on Mellanox shares.

Pitzer wrote, “MLNX has benefited and should continue to benefit from improvements in memory bus I/Os at the processor level, and SSD system level architecture – Cloud, Web 2.0, Big Data/Fast Data are all key secular trends.”

Moreover, analysts at Summit Research are also positive on shares of Mellanox moving forward. Srini Nandury outlined key areas.

Nandury finds the Intel Omniscale threat has been blown out of proportion and does not expect Mellanox to face meaningful competition from Intel.

In addition, its ethernet segment may be underrated by investors. Nandury finds this division of the company is gaining traction and market share.

Lastly, Nandury said Mellanox’s back end storage interconnect will be big opportunity moving forward and is not currently well-understood by investors.

Shares of Mellanox Technologies recently traded at $44.69, up 3 percent.