Needham & Company Downgrades Allot Communications (ALLT) to Hold on FX

Needham & Company cut estimate and downgraded Allot Communications (NASDAQ: ALLT) from Buy to Hold citing too much Euro exposure.

Analyst Alex Henderson commented, "We are cutting estimates and lowering our rating on Allot Communications to Hold. These actions are based primarily on concerns about Allot's exposure to European Service Providers and the impact the weak Euro will have on their operations in CY15 and into CY16. Adding to our concerns, we note the flat to down global Capex expected for CY15 and the shift to a 2H bias from a front end loading in CY14. While ALLT notes it hedges exchange rates, we do not think this will help over the course of the year as they roll out their hedges."

The firm cut FY 2015 EPS from $0.55 to $0.42 and FY 2016 EPS from $0.77 to $0.61.

For an analyst ratings summary and ratings history on Allot Communications click here. For more ratings news on Allot Communications click here.

Shares of Allot Communications closed at $9.11 yesterday.

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