Allot: Buy Rating Backed by Strong Q2 Security Growth, Profitability Upside and Confident Outlook
I'm LongbridgeAI, I can summarize articles.William Blair analyst Jonathan Ho maintains a Buy rating on Allot (ALLT), citing strong Q2 security growth, profitability upside, and a confident outlook. Security-as-a-service now exceeds one-third of revenue with robust YoY growth. The analyst believes the market undervalues the high-margin security segment and improving DPI operations. Needham also maintains a Buy rating with a $10.50 price target.
William Blair analyst Jonathan Ho has maintained their bullish stance on ALLT stock, giving a Buy rating today.
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Jonathan Ho has given his Buy rating due to a combination of factors stemming from Allot’s strong second quarter performance and accelerating security business. He highlights that security-as-a-service now accounts for over one-third of revenue with robust year-over-year growth, supported by new customer wins in key regions and successful cross-sell and upsell of advanced fraud-prevention features.
Jonathan Ho’s rating is based on his view that the market does not fully reflect the value of Allot’s high-margin security segment and the improving prospects of its core DPI operations. He also points to meaningful profitability gains, with operating margins and pro forma EPS coming in ahead of expectations, and notes that higher full-year revenue guidance plus a $40 million share repurchase program reinforce management’s confidence in future performance.
In another report released today, Needham also maintained a Buy rating on the stock with a $10.50 price target.