Allot Ltd. Initiates Coverage with Outperform Rating at William Blair

Allot Ltd. is initiated with an Outperform rating by William Blair analyst Jonathan Ho. The firm views Allot as a "disruptive play" with a large market opportunity of at least $5B in consumer and small business cybersecurity services delivered through communications service providers. Blair believes the company has created a "win-win value proposition" in the space.

William Blair analyst Jonathan Ho has initiated coverage on Allot Communications Ltd. (NASDAQ: ALLT) with an Outperform rating, highlighting the company's potential in the consumer and small business cybersecurity markets. Ho views Allot as a "disruptive play" with a large market opportunity, estimating at least $5 billion in consumer and small business cybersecurity services delivered through communications service providers [1].

Allot Communications is a global provider of security and monetization solutions, enabling mobile, fixed, and enterprise service providers to protect and personalize the digital experience. The company's integrated solutions, including analytics, traffic management, video caching, policy control and charging, service enablement, and security solutions, cater to a diverse customer base, including mobile and fixed broadband service providers, cable operators, private networks, data centers, governments, and enterprises [1].

According to Ho, 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. The analyst believes that Allot can disrupt the small and midsize business (SMB) and consumer cybersecurity markets by leveraging its communications service provider (CSP) customer base to deliver enterprise-grade cybersecurity solutions to customers lacking resources and expertise [2].

Allot's approach enables it to deliver cybersecurity solutions "seamlessly and transparently" to end customers through its CSP partnerships. Recent developments further underscore Allot's expansion efforts. For instance, Más Móvil Panama has selected Allot to provide network-native cybersecurity services, while Play, a major operator in Poland, has chosen Allot’s DNS Secure solution to enhance cybersecurity for its fixed broadband customers [2].

In addition to its strategic partnerships, Allot has announced a public offering of its ordinary shares 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 [2].

References:
[1] https://www.marketscreener.com/news/william-blair-initiates-allot-at-outperform-ce7c51d3df8cf222
[2] https://www.investing.com/news/analyst-ratings/allot-communications-stock-rating-initiated-at-outperform-by-william-blair-93CH-4203198