Mellanox soars as storage, cloud demand boosts results
(Reuters) - Shares of Mellanox Technologies Inc MLNX.TA (MLNX.O) touched their life high on Thursday, after the Israeli chipmaker's quarterly profit handily beat analysts' expectations on strong storage, data and cloud trends.
At least 10 brokerages raised their price targets on the company's stock.
"This is the second quarter in a row that Mellanox breaks every growth record possible and raises the level of investors' expectations to new heights," Harel Finance analyst Rami Rozen said in a note to clients.
Rozen, who has an "outperform" rating on Mellanox's stock, raised his price target by $30 to $110.
Mellanox, which designs chips for the InfiniBand data exchange standard that regulates the way servers and data storage systems communicate with each other, counts Hewlett-Packard Co (HPQ.N) and IBM Corp (IBM.N) among its customers.
"In InfiniBand (IB), Mellanox is a generation ahead of Intel Corp (INTC.O) and clearly benefiting from IB gaining share in various servers/storage platforms," Needham & Co wrote in a note.
The brokerage raised its price target on the stock to $100 from $69.
Psagot analyst Aviad Shimon, who had just raised his price target to $81 a week ago, said demand for Mellanox's products remains strong despite the economic slowdown. He raised his price target to $115 on Thursday.
Shares of the company jumped 44 percent to $95.55 in early trading, making them one of the biggest percentage gainers on the Nasdaq.
The stock has more than doubled in the past year.
(Reporting by Tova Cohen in Tel Aviv and Sayantani Ghosh in Bangalore; editing by Simon Jessop and Supriya Kurane)
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