Report
Srini Nandury
EUR 98.48 For Business Accounts Only

Disappointing qtr; Ethernet recovery but IB takes a bite; Remain BUY

​Large deal slippage; Product story remains intact: Following a second consecutive quarter of disappointing results and guidance, we remain BUY rated on the stock given that Mellanox still has one of the best product stories in the interconnect business. Estimate reset following the disappointing guidance driven by large deal slippage makes the stock even more attractive than before and remains one of our TOP ideas for 2017.

Underlying
Mellanox Technologies Ltd.

Mellanox Technologies is a fabless semiconductor company that designs, manufactures and sells interconnect products and solutions primarily based on the InfiniBand and Ethernet standards. Co.'s products facilitate data transmission between servers, storage systems, communications infrastructure equipment and other embedded systems. Co.'s products include integrated circuits, adapter cards, switch systems, multi-core and network processors, cables, modules, software, services and accessories as an integral part of a total end-to-end networking solution used in multiple markets, including high-performance computing, cloud, Web 2.0, storage, financial services, and enterprise data center.

Provider
Summit Insights Group
Summit Insights Group

 Summit Insights Group LLC (SIG), founded by Srini Nandury in 2018, is a fundamentals-driven, technology-focused, equity research boutique. SIG analysts cover Semiconductors, Semicap Equipment, Enterprise & Application Software, and IT Hardware & Storage companies. The firm also provides insight into adjacent areas such as Mobile and Internet Technologies. 

SIG provides deep, rigorous technology and financial analysis, unlike Wall Street analysis that is mainly driven by financial models. SIG principal analysts are known for their extensive industry experience, which we believe is essential to evaluate technology industry stocks. Each principal analyst has at least 5 years of hands-on industry experience prior to their tenure in equity analysis. SIG analysts are known for making non-consensus prescient stock calls.

SIG analysts follow more than 100 stocks regularly in the areas of Enterprise and Application Software, Storage, Networking, Security, Flash Memory, Big Data, Storage Networking, SSD and Processors. SIG analysts have access to the managements of both public and private companies to verify factual items from public comments or published statements, buttressing the integrity of our analysis. SIG analysts regularly attend industry conferences and visit startup companies to understand technology trends driving the industry. SIG is not a broker dealer, hence it does not  have investment banking or trading conflicts.  At SIG, we value integrity, our client interests and confidentiality above all else.

Analysts
Srini Nandury

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