RBC Recommends Allot; Sees Possible Acquisition

This seems like a duplication of a post I had a year ago (Jan 8, 2012 - "RBC: Allot could be an Acquisition Target for NEPs (in the longer term)" - here) - but  RBC Capital Markets' analyst, Daniel Meron (pictured), keeps a positive stand on Allot Communications.

Globes reports (here) that Meron says in a recent review that "small-mid cap technology companies will enjoy the increasing demand for Big data analysis, connectivity and storage .. Among RBC's 2013 recommended  shares are Allot and EZChip, based on the high demand for more sophisticated communication equipment (Allot) or network processors that can handle higher levels of  traffic (see "EZchip Unveiled 400-Gb wire-speed, C-Programmable, NPU" - here) .. Allot could be an acquisition candidate".

Indeed the stock (see chart below) is lower now ($13.4) compared to Jan 2012, after visiting a record high price of more than $29 during 2012.

RBC: Allot could be an Acquisition Target for NEPs (in the longer term)

     
The Marker reports (here, Hebrew) that RBC Capital Markets' analyst, Daniel Meron (pictured), remains positive on Allot Communications (NASDAQ:ALLT), and believes that the recent decline (see chart below) creates a buying opportunity. Meron maintains a target price of $20 for Allot.

"In the longer term, Allot could be an acquisition target for the big network equipment vendors", says Meron (see here to find a candidate).

A month ago, Meron said that the other way is also possible - "The company’s strong balance sheet should now be sufficient to adequately support strategic mergers and acquisitions that can broaden the company’s offering" (here).

See also - "DPI Shares Performance in 2011 - The Phenomenal, Great and Bad" - here.