
Allot Communications (ALLT) Stock Forecast & Price Target
Allot Communications (ALLT) Analyst Ratings
Bulls say
Allot Ltd has demonstrated strong financial growth with a total revenue increase of 8.5% year-over-year in 2QCY25, reaching $24.1 million, underscored by a remarkable 73.0% surge in SECaaS revenue to $6.4 million, which now constitutes 26.6% of the revenue mix. The company reported an impressive 43.3% growth in SECaaS Annual Recurring Revenue (ARR) for CY24, with projections indicating an expected further increase of 55%-60% in CY25, reflecting robust demand for its services. Additionally, the guidance for revenue was raised to a new range of $100.0 million to $103.0 million, alongside a 6.8% rise in Remaining Performance Obligations (RPO), reaching $63 million, indicating a solid pipeline and confidence in future performance.
Bears say
Allot Ltd has experienced a significant decline in Product Revenue, which fell 18.7% year-over-year to $7.6 million in the second quarter of fiscal year 2025, raising concerns about the company's ability to sustain current revenue levels amidst ongoing pressures. The firm faces challenges expanding its customer base with existing communication service providers (CSPs) and securing large deals, compounded by longer sales cycles for medium-to-large service providers, which could result in a decrease in signed Security as a Service (SECaaS) contracts. Additionally, a weaker economic environment is likely to exert further pressure on IT budgets, potentially exacerbating demand and pricing challenges for Allot's offerings.
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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