UPDATE: Oppenheimer Upgrades Allot Communications Following 2Q13 EPS Report

In a report published Wednesday, Oppenheimer analyst Ittai Kidron upgraded Allot Communications (NASDAQ: ALLT) from Perform to Outperform, and named an $18.00 price target.

In the report, Oppenheimer noted, “We're upgrading Allot to Outperform from Perform and setting an $18 price target. Though 2Q13 marked another EPS miss, we believe there's more than meets the eye. Excluding a $5.0M service provider order that was booked but can't be recognized until 2H13, 2Q13 appeared Allot's best in several quarters. Bookings grew ~20% YoY to record levels, we estimate Allot's normalized book-to-bill was ~1.3x, and bookings comparisons get easier in 2H13. We're notching down 2013/14 estimates and introducing a conservative 2015 forecast. That said, valuation already appears to bake in a worst-case scenario, and we believe if bookings can be sustained, our estimates will prove conservative.”

Allot Communications closed on Tuesday at $14.75.