TEL AVIV, Jan 7 (Reuters) - The Clal Finance brokerage on Monday lowered its recommendation for Israeli chip designer Mellanox Technologies to “market perform” from “buy” after the company warned of lower than expected fourth-quarter revenue.
Clal also removed its $115 price target for Mellanox until the company provides its forecast for the first quarter of 2013, which is expected later in January. The shares were down $0.17 at $52.14 in early Nasdaq trade.
“We estimate that Mellanox’s weakness is tied to the macro environment,” analyst Jonathan Kreizman said in a report. “We will review our recommendation if and when we see signs pointing to a return to growth momentum.”