Downgrade weighs on Mellanox; CFO to retire in Nov
A Friday downgrade of Mellanox Technologies Ltd. by a Stifel Nicolaus analyst still weighed on the company's shares Monday.
Separately, the technology company announced Monday that its long-time chief financial officer was leaving and would be replaced by its vice president of finance.
Stifel analyst Kevin Cassidy cut Mellanox, an Israeli supplier of equipment and software for data center servers and storage systems, to "Hold" from "Buy" on Friday, saying the recent big jump in the company's stock fairly reflects its revenue growth and potential for further gains.
Mellanox's revenue grew 68 percent last year, rose 61 percent in the first quarter and more than doubled in the three months ended in June. Shares have more than tripled this year and hit a record high of $120.05 on Thursday.
Cassidy said in the note on Friday that Mellanox's strategy is working well, and he expects strong growth to continue.
He was also upbeat about the management change, saying in another note Monday that he expects "an orderly CFO transition."
Mellanox's CFO, Michael Gray, will step down Nov. 5. He has been CFO since December 2004, before Mellanox's initial public stock offering in 2007. Finance executive Jacob Shulman, who joined Mellanox in 2007, will replace him.
Gray will not take a similar job at another company and instead plans to spend more time with his family in Oregon, Mellanox said. He will stay on at Mellanox until Feb. 4 to help with the transition.
Mellanox stock tumbled $9.20, or 8.3 percent, to $101.65. Shares had also dropped 7.6 percent Friday.