Allot: Strengthening Fundamentals, High-Growth SECaaS, and Margin Expansion Underpin Reiterated Buy Rating and $13 Target

In a report released today, Shaul Eyal from TD Cowen reiterated a Buy rating on Allot, with a price target of $13.00.

Shaul Eyal has given his Buy rating due to a combination of factors tied to Allot’s strengthening fundamentals and execution. He expects the company to post solid fourth-quarter 2025 results, underpinned by robust performance in its cybersecurity and network intelligence offerings. Allot’s guidance for 2025 revenue of $100–$103 million, implying meaningful year-over-year growth in the fourth quarter, supports a positive outlook. In addition, he anticipates the company will deliver revenue and non-GAAP EPS in line with expectations, reflecting operational discipline and improved visibility.

Shaul Eyal’s conviction is further reinforced by the strong momentum in Allot’s Security-as-a-Service (SECaaS) business, which is projected to achieve annual recurring revenue growth above 60%. This high growth rate, coupled with a rising mix of recurring revenue as the firm pursues a “cybersecurity first” strategy with large service providers, indicates an increasingly resilient and scalable business model. He also expects margin expansion as higher-margin SECaaS revenue becomes a larger part of the overall mix, highlighting the success of Allot’s turnaround efforts. Taken together, these trends justify reiterating a Buy rating and support his $13 price target.

In another report released on January 20, Needham also maintained a Buy rating on the stock with a $12.50 price target.