UPDATE: Topeka Capital Markets Initiates Coverage on Mellanox Technologies Challenges Lie Ahead

In a report published on Thursday, analysts from Topeka Capital Markets initiated coverage on Mellanox Technologies (NASDAQ: MLNX) with a Hold rating and a $53 PT.

In the report, lead analyst Suji De Silva commented that, "We are initiating coverage of Mellanox Technologies with a Hold rating and a $53.00 price target. We believe that MLNX has been challenged by the lumpy nature of revenue from its target markets. As a result, shares have struggled year-to-date as investors attempt to gain comfort with the Company's on-going revenue run-rate opportunity. With MLNX still experiencing muted demand and inventory digestion, we would wait for a more attractive entry point prior to getting aggressive with the shares."

Mellanox Technologies closed on Thursday at $50.82