NEW YORK (TheStreet) -- Shares of Allot Communications (ALLT) are plummeting, down 9.07% to $8.22 in early market trading Wednesday, after the telecommunications company was downgraded to "underperform" from "buy" by analysts at Bank of America/Merrill Lynch this morning.
Analysts at the firm also lowered its price target on shares to $10.50 from $17.
Bank of America/Merrill Lynch cited its concerns over fundamentals due to the company's recent management departures and weak carrier spending for its cut in rating and price target.
Must Read: Warren Buffett's 25 Favorite Stocks
Allot Communications develops bandwidth management hardware as well as software products that help resolve network congestion problems in any network configuration.
Separately, TheStreet Ratings team rates ALLOT COMMUNICATIONS LTD as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ALLOT COMMUNICATIONS LTD (ALLT) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."