Allot Communications stock initiated with Buy rating at TD Cowen

Investing.com - TD Cowen has initiated coverage on Allot Communications (NASDAQ:ALLT) with a Buy rating and a price target of $13.00. The stock, currently trading at $9.53, has shown remarkable strength with a 176% return over the past year. According to InvestingPro data, the company maintains a "Fair" overall financial health score.

The research firm views Allot Communications as "well positioned to sustain DD profitable growth in the coming years" driven by several key factors.

TD Cowen cites "healthy tailwinds within the cybersecurity arena" as one driver, along with the company’s strategy of "addressing the underserved SMB arena with a TAM opportunity of ~$10B (FY28) through CSP partnerships."

The firm also highlights Allot’s "new mgmt team that has placed ALLT on a profitable growth path" as a positive factor in its investment thesis.

TD Cowen notes the company presents "attractive valuation levels given small, under-covered story" as another reason supporting its Buy rating and $13 price target.

In other recent news, Allot Ltd reported its Q2 2025 financial results, revealing a positive revenue surprise and a slight earnings per share (EPS) beat. The company achieved a revenue of $24.1 million, surpassing the forecast of $22.5 million, which marked a 7.11% surprise. The EPS was reported at 3 cents, compared to a forecast of zero, indicating an improvement in profitability. These results reflect significant developments for Allot Ltd as it continues to navigate the financial landscape. Despite these positive financial indicators, the stock experienced fluctuations in pre-market trading. The stock initially declined but later rebounded, demonstrating market responsiveness to the earnings report. These recent developments highlight the importance of monitoring Allot Ltd’s financial performance and market reactions.

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