Allot: Security-First Turnaround Driving Margin Expansion and High-Growth SaaS Revenue

TD Cowen analyst Shaul Eyal reiterated a Buy rating on Allot today and set a price target of $11.00.

Shaul Eyal has given his Buy rating due to a combination of factors that highlight Allot’s operational turnaround and strengthening security franchise. He points to accelerating Security-as-a-Service annual recurring revenue, supported by robust cybersecurity demand and the firm’s Security First strategy, which together are driving improved profitability, including the strongest margins the company has delivered in roughly ten years.

Eyal also emphasizes that Security-as-a-Service, with its higher margin profile, is poised to outpace overall revenue growth and further enhance earnings over time. In addition, he notes that Allot’s Smart products and Network Intelligence offerings complement the core security platform, benefiting from a growing customer base and a solid deal pipeline, all of which underpin his Buy rating and $11 price target.