UPDATE: Craig-Hallum Upgrades Mellanox on Multiple Growth Drivers Ahead in 2014

In a report published Thursday, Craig-Hallum Capital Group analyst Rajesh Ghai upgraded the rating on Mellanox Technologies Ltd. (NASDAQ: MLNX) from Hold to Buy, and raised the price target from $52.00 to $54.00.

In the report, Craig-Hallum Capital Group noted, “While we continue to be less enthusiastic than the rest of the Street on MLNX's 2HFY13 prospects, we believe the decline following the 2QFY13 report puts the stock at a level that bakes in very low expectations for the remainder of FY13...Our new $54 price target reflects an ex-cash 20x multiple on our new FY14 EPS estimate of $2.25. We expect MLNX management to place these drivers under the spotlight at the company's upcoming October 25th Analyst Day, which follows its October 23rd earnings report and we recommend investors buy MLNX shares ahead of the event.”

Mellanox Technologies closed on Wednesday at $39.88.