Cantor Fitzgerald has reaffirmed an Overweight recommendation on Allot Communications (NASDAQ: ALLT) and retained a $15.00 price target, signaling nearly 50% upside from the stock level noted at $10.13. The firm highlighted several demand-side trends and commercial milestones that it says support continued expansion of Allot’s Security-as-a-Service business into the fourth quarter of 2025.
Analysts at the firm pointed to a carrier-led distribution model for SECaaS, an uptick in AI-driven cyber threats and growing small- and medium-business and consumer appetite for bundled security services as principal growth catalysts. These secular dynamics, coupled with the company’s commercial traction, underlie the forecast for sustained momentum.
Market performance to date has been strong: the shares returned 38.9% over the six months prior to the report. Financial projections referenced by the research note show net income is expected to grow in the current year, and consensus forecasts indicate the company will remain profitable.
Commercial developments cited by the analyst team include recent contract awards to Verizon Business and a significant Tier-1 EMEA SG-Tera III deployment. The firm described these agreements as providing multi-year visibility into revenue and the potential to drive upside relative to current estimates.
On the balance-sheet front, Allot is presented as financially conservative, with more cash than debt and a current ratio of 2.51. The valuation backdrop is notable: Allot’s estimated fiscal 2026 enterprise-value-to-sales multiple stands at roughly 3.5 times, versus a peer group average near 6.4 times. The research team suggested the stock could be a candidate for multiple re-rating should investor confidence in the SECaaS narrative deepen.
At the same time, the company is trading at a high reported price-to-earnings multiple of 407.9, even as revenue advanced 7.5% in the most recent twelve-month period. The research note projects another quarter of greater-than-60% growth and describes the fiscal 2026 outlook as strong. An upcoming earnings release, scheduled for February 25, will provide additional detail on the company’s performance and outlook.
Additional corporate metrics highlighted in the coverage note include the outsized contribution from the SECaaS segment. Allot’s third-quarter results had already exceeded analyst expectations, driven by robust SECaaS growth. The security business accounted for 28% of overall revenue in that period, and Annual Recurring Revenue for SECaaS rose 60% year-over-year in the third quarter of 2025, underscoring its increasing role in the company’s top-line mix.
In its published research, the firm also emphasized a strategic repositioning of the company away from a pure network intelligence vendor toward a security-focused consumer company. That shift, together with the sales momentum and recurring revenue gains, informs the research firm's positive stance on the stock.
How investors can follow upcoming developments
The forthcoming earnings report and the company’s ability to convert recent contract awards into sustained subscription revenue will be key data points for assessing valuation and growth models going forward.