Mizrahi Tefahot lowers Mellanox's target price

However, Mizrahi Tefahot analyst Orit Levin still sees a 41% upside in the share's price.

Mizrahi Tefahot Bank (TASE:MZTF) has lowered its target price for Mellanox Technologies Ltd. (Nasdaq:MLNX; TASE:MLNX) by 4% to $111.20 per share., after the Infiniband developer lowered its fourth quarter guidance last week. However, the bank has kept its "Buy" recommendation for the share and even after the lowering of the target price the bank still sees a 41% upside in the share price.

Mizrahi Tefahot analyst Orit Levin believes that, "the fall in the market was overdone, and stemmed from the fact that the market believed that the big deals from the start of the year would continue through to the next quarter. The company has no high visions beyond the next quarter so it does not have the ability to lower expectations."

Levin continued, "In our belief there is still rapid growth potential in the supercomputers market and in the web2 and cloud computer storage sectors."

Published by Globes [online], Israel business news - www.globes-online.com - on October 21, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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