Allot Climbs on Mobile Growth: Israel OvernightJessica Summers
Allot Communications Ltd. surged to a six-month high in New York on prospects the Israeli maker of technology used to track wireless traffic will benefit from a rebound in mobile provider spending in the second half of 2013.
The shares gained 7.3 percent to $15.55, swelling the premium versus the stock in Tel Aviv to 1.3 percent. The Bloomberg Israel-US Equity Index increased 0.2 percent to 98.04, the highest price since August 2011. Compugen Ltd., an Israeli biotechnology company, rallied 45 percent after signing a cancer drug deal with Bayer AG. Cellcom Israel Ltd. closed at the biggest premium among the largest dual-listed companies.
AT&T Inc., the largest U.S. phone company, said on July 24 that it gained 551,000 monthly subscribers in the second quarter, after Verizon Wireless, the second-largest, added 941,000, according to a July 18 statement. Analysts at Northland Securities Inc. and Maxim Group LLC raised their price targets on shares of Hod Hasharon, Israel-based Allot by as much as 13 percent yesterday. The company will probably report today that second-quarter sales fell 1.3 percent, according to the average estimate of 10 analysts surveyed by Bloomberg.
“There’s some rising optimism around service providers spending again,” Brent Bracelin, an analyst at Pacific Crest Securities LLC, who rates Allot the equivalent of buy, said by phone from Portland, Oregon, yesterday. “Ultimately we do expect a second half rebound in their business.”
T-Mobile, the fourth-largest carrier, increased monthly contract customers last quarter for the first time in three years, according to people familiar with the matter. Qualcomm Inc., the largest seller of semiconductors for mobile phones, forecast fiscal fourth-quarter sales that may exceed analysts’ estimates on July 24.
Shares of Allot have jumped 35 percent since June 24, the day before it got orders from three of the world’s top 10 telecommunication operators. Allot will post a profit of $11.4 million in 2013 after reporting a net loss of $6.74 million in 2012, according to the average estimate of ten analysts surveyed by Bloomberg.
The Bloomberg Israel-US gauge extended its gain this year 13.5 percent. The TA-25 Index dropped 0.4 percent to 1,203.65.
Allot rose for the first time in seven days in New York. The shares in Tel Aviv jumped 5.2 percent to 54.55 shekels, or $15.35.
Compugen, based in Tel Aviv, rallied to $7.89, the highest price since Jan. 2004. The Tel Aviv-listed stock surged 41 percent to 28.45 shekels, or $8.01, the biggest rally since 2009.
Leverkusen, Germany-based Bayer will pay $10 million upfront in cash to Compugen in excess of $500 million for meeting targets in researching, developing and commercializing cancer therapies, the company said yesterday in a statement. The deal may yield more than $540 million in payments for Compugen.
Cellcom, Israel’s largest mobile operator, declined 0.7 percent to $11.23. The shares in Tel Aviv dropped for a second day, falling 0.6 percent to 39.34 shekels, or $11.07.