UPDATE: Bank of America Downgrades Allot Communications Ltd. to Underperform, Lowers PT on Weak Underlying Trends

In a report published Wednesday, Bank of America analyst Tal Liani downgraded the rating on

from Buy to Underperform, and lowered the price target from $17.00 to $10.50. In the report, Bank of America noted, “We are downgrading Allot from Buy to Underperform, reducing our PO from $17 to $10.5. We have concerns over Allot's key fundamentals, weak carrier spending, uncertainty surrounding Title 2 reform in the US and recent management departures. We reduce our FY2014/2015 revenue estimates from $118/$136mn to $117/$128mn and EPS from $0.32/$0.56 to $0.30/$0.46. Trading at 20x our new EPS estimates, valuation is another risk factor in our view.” Allot Communiciations Ltd. closed on Tuesday at $9.04.