Allot: Expanding Security-as-a-Service Partnerships Support Undervalued Long-Term Growth, Justifying Buy Rating

Analyst Matthew Calitri from Needham maintained a Buy rating on Allot and keeping the price target at $12.50.

Matthew Calitri has given his Buy rating due to a combination of factors tied to Allot’s growth prospects and positioning. He highlights that management’s participation in the Needham Growth Conference underscored increasing traction for the company’s Security-as-a-Service offerings, particularly as communication service providers expand deployment to their customer bases. The discussion with the CEO and CFO reinforced his view that Allot is aligned with a key industry trend toward network-based security solutions that can scale with rising data usage and cyber threats.

Matthew Calitri also sees Allot’s expanding relationships with communication service providers as an important engine for both recurring revenue and long-term earnings visibility. He believes the company’s SECaaS model can drive higher-margin, subscription-like revenue streams as adoption broadens among end-users. Taken together, these factors support his conviction that Allot’s current valuation does not fully reflect its longer-term growth potential, justifying his Buy recommendation.

Calitri covers the Technology sector, focusing on stocks such as Allot, Penguin Solutions, and Cognyte Software. According to TipRanks, Calitri has an average return of 13.0% and a 66.67% success rate on recommended stocks.

In another report released on January 13, Northland Securities also maintained a Buy rating on the stock with a $18.00 price target.