UPDATE: Wunderlich Securities Downgrades Allot Communications to Hold on
Wunderlich Securities reduced its rating on Allot Communications (NASDAQ: ALLT) from Buy to Hold and cut its price target from $21 to $27.
Wunderlich Securities said, "We are trimming our forecast and price target for Allot Communications (ALLT) while also reducing our rating to Hold from Buy. Our forecast revision anticipates a lull in growth until mid-next year. By that time we expect more volume from installed base capacity upgrades and adoption of adjacent technologies, such as caching, video optimization, traffic steering and the load balancing that the company has been working on organically and through acquisitions. In the meantime we expect continued lengthening of sales cycle from H112 levels due to economic conditions, LTE spending priorities and more competition. We have also tempered our expectations for the U.S. market."
Allot Communications closed at $20.10 on Wednesday.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.