UPDATE: FBN Securities Downgrades Mellanox Technologies to Sector Perform on Lower Guidance

FBN Securities reduced its rating on Mellanox Technologies MLNX from Outperform to Sector Perform and lowered its price target from $100 to $60. FBN Securities commented, "We are lowering our PT from $100 to $60 to reflect the recent trend of disappointing news (remember that the stock declined from around $105 to the $70s at the time of its Oct. earnings call on concerns about weaker guidance and declining margins; it previously guided FQ4 revenue of $145-150M, lower than prior $157M consensus, and it previously guided FQ4 NG GM at 68.5-69.5%, below our prior 70.5% at the time). Now, the company is lowering the revenue (but not GM) guidance further still, and still expects NG opex growth of 6-8% Q/Q." Mellanox Technologies closed at $61.19 on Wednesday.