UPDATE: Wunderlich Initiates Coverage on Mellanox at Buy

According to Wunderlich Securities, Mellanox Technologies

coverage is initiated at Buy. Wunderlich Securities said that it is initiating coverage of Mellanox Technologies, Ltd. (

) with a Hold rating and $36 price target on the shares. “Our $36 price target reflects a P/E multiple of 30x applied to NTM EPS of $1.24. This multiple is at the lower end of the range for high growth/high margin companies in the space. We believe MLNX's dominant position and InfiniBand's expansive adoption potential warrant this multiple. We believe the potential for price appreciation on MLNX shares is strong over the longer term; however, our Hold rating reflects near-term conservatism ahead of the Romley launch.” Mellanox Technologies closed yesterday at $32.27.