Wedbush Starts Allot Communications (ALLT) at Outperform; Solid Growth and Improving Profitability
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Price: $7.83 -1.26%
Rating Summary:
9 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
9 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Wedbush initiates coverage on Allot Communications (NASDAQ: ALLT) with an Outperform. PT $16.00.
Wedbush analyst says, "We view Allot’s growth prospects as among the most attractive in networking as adoption of DPI solutions is being driven by rapid consumption of bandwidth-intensive applications, the need to rationalize network costs and to improve average revenue per user. We believe the use of DPI in the service provider market is fast becoming one of the most critical components of the network. The fact remains that while network traffic is increasing exponentially, bandwidth is not unlimited. Unfortunately, spectrum and fiber are costly to acquire and often the most cost-effective solution to manage scarce resources is to deploy traffic management solutions. While we have nearterm concerns regarding the spending environment, especially in Europe, we believe visibility remains high due to a heavy backlog of ongoing deployments."
"Longer-term, we believe the rollout of 4G/LTE networks, combined with the shift away from unlimited data plans towards usage-based billing and more customized service options, should foster strong adoption of DPI solutions. We advise smallcap, growth investors looking to capitalize on the growth of mobile data traffic with a company that is delivering solid growth and margin expansion to own the name."
For more ratings news on Allot Communications click here and for the rating history of Allot Communications click here.
Shares of Allot Communications closed at $12.16 yesterday.
Wedbush analyst says, "We view Allot’s growth prospects as among the most attractive in networking as adoption of DPI solutions is being driven by rapid consumption of bandwidth-intensive applications, the need to rationalize network costs and to improve average revenue per user. We believe the use of DPI in the service provider market is fast becoming one of the most critical components of the network. The fact remains that while network traffic is increasing exponentially, bandwidth is not unlimited. Unfortunately, spectrum and fiber are costly to acquire and often the most cost-effective solution to manage scarce resources is to deploy traffic management solutions. While we have nearterm concerns regarding the spending environment, especially in Europe, we believe visibility remains high due to a heavy backlog of ongoing deployments."
"Longer-term, we believe the rollout of 4G/LTE networks, combined with the shift away from unlimited data plans towards usage-based billing and more customized service options, should foster strong adoption of DPI solutions. We advise smallcap, growth investors looking to capitalize on the growth of mobile data traffic with a company that is delivering solid growth and margin expansion to own the name."
For more ratings news on Allot Communications click here and for the rating history of Allot Communications click here.
Shares of Allot Communications closed at $12.16 yesterday.
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