William Blair Initiates Coverage on Allot with Outperform Rating

William Blair initiates coverage on Allot (ALLT) with an "Outperform" rating, expecting positive future performance. No specific price target was provided, but the rating suggests Allot's stock is expected to perform better than the overall market or its sector peers. Investors will be watching closely as this analyst action could influence investment decisions and market interest in the stock.

William Blair has initiated research coverage on Allot Ltd. (ALLT), a leading provider of cybersecurity and network intelligence solutions delivered via communications service providers (CSPs), with an "Outperform" rating. The analyst, Jonathan Ho, expects positive future performance for the company, suggesting that Allot's stock is likely to perform better than the overall market or its sector peers.

According to Ho, Allot is well-positioned to offer security as a value-added service to CSPs, which already provide connectivity for consumer devices and have an existing relationship with consumers. This win-win value proposition can raise average revenue per user (ARPU), reduce churn, lower operational costs, and improve customer satisfaction scores.

Ho estimates that Allot's earnings per share (EPS) will reach $0.14 in 2025 and $0.23 in 2026, with revenue projected to be $100 million and $114 million, respectively. The analyst also notes that the company's security-as-a-service (SECaaS) business is growing at an above-50% rate and now constitutes over 20% of total revenue. Additionally, the deep packet inspection (DPI) market, which has faced pricing pressure, is showing early signs of stabilization, which could help return Allot's DPI business to growth.

William Blair, known for its expertise in investment banking, investment management, and private wealth management, is the premier global partnership with a presence in more than 20 offices worldwide. The firm provides advisory services, strategies, and solutions to meet clients' evolving needs and operates as an independent and employee-owned entity.

Investors will be closely watching this analyst action, as it could influence investment decisions and market interest in Allot's stock. While no specific price target was provided, the "Outperform" rating indicates that analysts at William Blair are bullish on the company's future prospects.

References:
[1] https://www.williamblair.com/News/Allot-Ltd-Initiation
[2] https://www.marketscreener.com/news/william-blair-initiates-allot-at-outperform-ce7c51d3df8cf222