Allot Drops to 1-Year Low as Wedbush Cuts Rating: Tel Aviv MoverShoshanna Solomon
Allot Communications Ltd. dropped to the lowest level in more than a year after Wedbush Securities Inc. cut its recommendation for the developer of products to track wireless traffic to neutral from outperform.
Allot shares retreated 3.9 percent to 53.37 shekels ($14.13) at the close in Tel Aviv, the lowest level since November 2011 and bringing the company’s four-day decline to 22 percent. Trading volume was 1.5 times the three-month average daily volume. The TA-25 benchmark index slid 0.2 percent to 1,203.97.
“While we think the company is involved in several large opportunities with both fixed and mobile carriers, we are uncertain on the timing of these deals as sales cycles and the deal approval process have lengthened,” Wedbush’s Sanjit Singh and Ryan Flanagan wrote today in an e-mailed note. “Given the lack of visibility on timing of orders we are left with a lack of near-term catalysts to keep our outperform rating.” The analysts lowered the price estimate to $17 from $28.
Allot’s U.S.-traded shares tumbled 24 percent, the biggest slide since the initial public offering in New York in 2006, on Jan. 3 after Oppenheimer & Co. said the company’s fourth-quarter sales and profit would be below average estimates.