Israel Overnight

Allot Communications Ltd. is a buy to Bank of America Corp. even afterwards a six-week rally pushed valuations of the Israeli maker of high-speed networking equipment to four times that of the Standard & Poor’s 500 Index.

Allot is benefitting from rising demand for systems that manage traffic on data networks as consumers buy more tablets and smartphones, according to analysts including Tal Liani at Bank of America. Apple Inc.’s sales of iPhones rose 87 percent in the first nine months of the year, during revenue from iPads jumped four-fold.

High premium because if you look at Web traffic today

"People are justifying a high premium because if you look at Web traffic today, it completely exploded," said Jay Srivatsa, an analyst at Chardan Capital Markets LLC in New York, who has a "buy" rating on the shares. "Even in tough times, people all in all buy smartphones."

The Hod Hasharon, Israel-based company said third-quarter net income increased to $2.1 million from $800,000 a year previously as revenue rose 37 percent to $20.1 million.

The third quarter

Israeli innovation companies raised $522 million in capital while the third quarter, $47 million less than in the second quarter, according to the Israel Venture Capital-KPMG Quarterly Survey released Oct. 24.

MagicJack VocalTec, the Israeli company whose founders invented the research used for making telephone calls over the Internet, known as voice over Internet protocol, gained 4.1 percent yesterday to $22.02.

"MagicJack’s low-cost consumer VoIP (Voice over Internet Protocol) service is an especially attractive alternative to traditional telephony service for those consumers with a high long-distance call volume," Aaron Blazar, the vice president of Boston-based telecom innovation company Atlantic-ACM, wrote in an e-mailed report yesterday.

Partner Communications Co. fell to the lowest level in seven weeks, retreating 4 percent to $9.48. The Tel Aviv shares lost 3.3 percent to 35.64 shekels, or the equivalent of $9.51.