Allot N.Y. Premium Grows on New Demand: Israel Overnight
Allot Communications Ltd. (ALLT), the Israeli maker of devices to track mobile traffic, rallied to a five-month high in New York on speculation demand will rise as wireless operators expand LTE networks.
The shares jumped 5.5 percent to $15.05, 2.5 percent above the Tel Aviv stock for the widest premium on the Bloomberg Israel-US Equity Index of Israeli companies traded in New York. The gauge added 0.8 percent to the highest in almost two years, as Prolor Biotech Inc. (PBTH) climbed the most in six weeks.
Allot has surged 32 percent since June 24, the day before it announced orders from three of the world’s top 10 telecommunication operators, exceeding the gains for all seven members of the Russell 2000 Telecommunications Equipment Index. Global spending on so-called long-term evolution technology will reach $24.3 billion in 2013, almost triple the $8.7 billion estimated for 2012, according to the most recent forecast from IHS iSuppli, a market research firm in Englewood, Colorado.
“Customers are coming back to Allot now that they’ve started to upgrade to LTE,” Matthew Robison, an analyst at Wunderlich Securities Inc. in San Francisco who upgraded Allot to buy on June 26, said in a telephone interview yesterday. “It looks like they’re back in a positive order cycle.”
The Bloomberg Israel-US gauge advanced to 95.14, extending this year’s gain to 10 percent. The TA-25 Index slipped 0.1 percent to 1,222.84 at 10:06 a.m. in Tel Aviv.
Allot, based in Hod Hasharon, Israel, rallied this morning for a sixth day in Tel Aviv to the highest price since March 14. The stock climbed 2.7 percent to 53.94 shekels, or $15.
Prolor, an Israeli biotechnology company, rose 2.9 percent to $6.75 in New York. The Nes Ziona, Israel-based company’s Tel Aviv-traded shares advanced this morning for a fourth day, increasing 1.3 percent to 24.1 shekels, or $6.70.
Tel-Aviv Stock Exchange Chief Executive Officer Ester Levanon said yesterday that she will step down at the end of the year, a decision that follows a drop in trading volume and the bourse’s failed bid to join MSCI Inc.’s Europe Index.
Levanon, who oversaw the exchange’s shift to developed-market status, didn’t disclose the reason for her resignation in an e-mailed statement.
To contact the reporter on this story: Jessica Summers in New York at email@example.com