Jefferies Downgrades Allot Communications (ALLT) to Hold

Jefferies downgraded Allot Communications (NASDAQ: ALLT) from Buy to Hold with a price target of $25 (up from $21).

The firm comments, "We raise our target to $25 based on checks that indicate continued strong fundamentals; however, we believe our new target's 42x P/E represents a full valuation. We already est a strong OM ramp from 16.8% in Q1 to 24.4% in Q4 and are above the St for 2012 EPS ($0.60 vs. St $0.55). Also, while we think Allot's U.S. carrier business could increase in 2012, we do not expect tier-1 U.S. mobile revenues this year."

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 $23.54 yesterday.

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