Allot Communications stock rating initiated at Outperform by William Blair

Published 20/08/2025, 22:04
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Investing.com - William Blair initiated coverage on Allot Communications (NASDAQ:ALLT) with an Outperform rating on Wednesday. The stock, currently trading at $7.26, has demonstrated remarkable strength with a 113.8% return over the past year, according to InvestingPro data.

The research firm views Allot as a "disruptive play" in the small and midsize business (SMB) and consumer cybersecurity markets, segments that have historically been underserved by cybersecurity companies focused on large enterprises.

William Blair believes Allot can disrupt these markets by leveraging its communications service provider (CSP) customer base as a channel to deliver enterprise-grade cybersecurity solutions to customers lacking resources and expertise.

The firm notes that Allot’s security-as-a-service (SECaaS) business is growing at a rate exceeding 50% and now represents more than 20% of the company’s total revenue.

Allot’s approach enables it to deliver cybersecurity solutions "seamlessly and transparently" to end customers through its CSP partnerships, according to William Blair’s analysis.

In other recent news, Allot Ltd. has announced a public offering of its ordinary shares, aiming to use the proceeds to repay $31.41 million of outstanding debt to Lynrock Lake Master Fund LP, its largest shareholder. This move is part of the company’s strategy to manage its financial obligations more effectively. Additionally, Más Móvil Panama has selected Allot to provide network-native cybersecurity services to its customers. The implementation will begin with residential postpaid customers and later expand to prepaid mobile and fixed-line segments, offering protection against various cyberthreats. Furthermore, Play, a major operator in Poland, has chosen Allot’s DNS Secure solution to enhance cybersecurity for its fixed broadband customers. This agreement builds on a previous deployment of Allot’s NetworkSecure services for Play’s mobile customers in 2021. These developments highlight Allot’s ongoing efforts to expand its cybersecurity solutions across different markets.

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