Mellanox Technologies (MLNX): Is Guidance Conservative Or Is Competition Increasing - Brean Capital

Brean Capital analyst, Mike Burton, noted that Mellanox Technologies (NASDAQ: MLNX) reported a Jun-16Q beat on both the top and bottom line driven by strength for its Ethernet products, which grew an impressive 28% Q/Q. However the Company guided the mid-point of revenues for the Sep-16Q to be slightly below the consensus estimate, which has an element of conservatism.

It also may be a shift in the competitive landscape given Intel’s (NASDAQ: INTC) comments on the uptake of its Omni-Path architecture, which was launched earlier this year. According to Intel it has already achieved 30% market segment share of the 100G Infiniband market.

No change to Buy rating but price target of $60.00 is down from $55.00.

For an analyst ratings summary and ratings history on Mellanox Technologies click here. For more ratings news on Mellanox Technologies click here.

Shares of Mellanox Technologies closed at $51.24 yesterday.

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