Allot: SECaaS Outperformance and Strong Recurring Revenue Drive Buy Rating and Price Target Raise to $10.50
I'm LongbridgeAI, I can summarize articles.Analyst Matthew Calitri from Needham has reiterated a Buy rating on Allot, raising the price target to $10.50. This decision is based on Allot's SECaaS revenue growth of 71% year-over-year, reaching $8.7 million, surpassing expectations. Calitri also noted strong recurring revenue growth of 26% to $17.8 million, which now constitutes two-thirds of total revenue. Overall revenue guidance remains at $113 million to $115 million, with management confident in achieving the higher end. TD Cowen also maintains a Buy rating with a $11.00 price target.
Matthew Calitri, an analyst from Needham, reiterated the Buy rating on Allot. The associated price target was raised to $10.50.
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Matthew Calitri has given his Buy rating due to a combination of factors, starting with Allot’s SECaaS revenue significantly outpacing expectations, rising 71% year over year to $8.7 million versus the $7.8 million consensus. He also highlights management’s increased conviction in achieving at least 40% year-over-year SECaaS revenue growth in calendar 2026, supported by improved visibility into the business outlook.
In addition, Calitri notes that overall revenue guidance of $113 million to $115 million remains intact, with management now expressing greater confidence in landing near the high end of that range. The strong 26% year-over-year expansion in recurring revenue to $17.8 million, which now accounts for roughly two-thirds of total revenue, is seen as a key driver of the top-line beat and supports a more favorable risk-reward profile, leading him to raise his price target to $10.50.
According to TipRanks, Calitri is a 4-star analyst with an average return of 37.8% and a 66.67% success rate. Calitri covers the Technology sector, focusing on stocks such as Allot, TSS, and Penguin Solutions.
In another report released yesterday, TD Cowen also reiterated a Buy rating on the stock with a $11.00 price target.