
Allot Communications (ALLT) Stock Forecast & Price Target
Allot Communications (ALLT) Analyst Ratings
Bulls say
Allot Ltd reported a significant 8.5% year-over-year increase in total revenue for 2QCY25, reaching $24.1 million, driven largely by an impressive 73.0% growth in SECaaS revenue, which amounted to $6.4 million and constituted 26.6% of the overall revenue mix. The company demonstrated robust growth in Annual Recurring Revenue (ARR) for SECaaS, registering a 43.3% increase in CY24 and projecting an additional 55%-60% growth for CY25, further supported by a rise in remaining performance obligations (RPO) by 6.8% year-over-year to $63 million. Additionally, the upward revision of revenue guidance to a range of $100 million to $103 million indicates positive momentum and confidence in the firm's market position and future performance.
Bears say
Allot Ltd has experienced a significant decline in Product Revenue over the past four years, culminating in an 18.7% year-over-year decrease to $7.6 million in the second quarter of fiscal year 2025, while management struggles to sustain this revenue level amidst pressure on capital expenditure budgets. The company's challenges in expanding relationships with existing communication service providers (CSPs) and securing large deals are compounded by protracted sales cycles for medium to large service providers, which inhibits immediate revenue growth potential. Furthermore, a weaker economic backdrop is likely to exacerbate pressures on IT budgets and demand, leading to additional pricing challenges for Allot's services.
This aggregate rating is based on analysts' research of Allot Communications and is not a guaranteed prediction by Public.com or investment advice.
Allot Communications (ALLT) Analyst Forecast & Price Prediction
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