Wall Street Analysts Predict a 54.99% Upside in Allot Communications (ALLT): Here's What You Should Know

Core Viewpoint - Allot Communications (ALLT) shows potential for significant upside, with a mean price target of $13.5 indicating a 55% increase from its current price of $8.71 [1] Price Targets and Analyst Estimates - The mean estimate includes three short-term price targets with a standard deviation of $1.32, suggesting variability in analyst predictions. The lowest estimate is $12.50 (43.5% increase), while the highest is $15.00 (72.2% increase) [2] - A low standard deviation among price targets indicates strong agreement among analysts regarding the stock's price direction, which can serve as a starting point for further research [9] Earnings Estimates and Analyst Sentiment - Analysts have shown increasing optimism about ALLT's earnings prospects, with a positive trend in earnings estimate revisions. This trend has historically correlated with near-term stock price movements [11] - Over the last 30 days, two earnings estimates have been revised upward, leading to a 140% increase in the Zacks Consensus Estimate for the current year [12] - ALLT holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for near-term upside [13] Caution on Price Targets - While consensus price targets are often sought after, they can mislead investors. Analysts may set overly optimistic targets due to business incentives, which can inflate expectations [3][8] - Investors should approach price targets with skepticism and not rely solely on them for investment decisions, as they may not accurately reflect future stock performance [10]