Cybersecurity Underdog: Allot Rides Telco Tailwinds and SMB Momentum

Core Insights - Allot Ltd. is gaining attention as a small-cap tech stock, with recent coverage initiated by TD Cowen & Co. and Needham, both giving it a Buy rating due to its growth potential in the cybersecurity market and focus on small businesses [1][2]. Company Overview - Allot Ltd. is based in Hod HaSharon, Israel, and specializes in network intelligence and cybersecurity solutions for telecom service providers and enterprises globally [3]. - The company's product offerings include Allot Smart and Allot Secure, which utilize deep packet inspection for traffic management, application visibility, and network-based security services [3]. Market Positioning - TD Cowen estimates that Allot is positioned to achieve double-digit profitable growth, driven by a total addressable market of approximately $10 billion in the small-business segment [1]. - Needham highlights Allot's momentum in the carrier cybersecurity-as-a-service (CCaaS) model, which adds recurring subscription revenue on top of telecom distribution [2].