Cybersecurity Underdog: Allot Rides Telco Tailwinds and SMB Momentum

Allot Ltd. (NASDAQ:ALLT) is one of the small-cap tech stocks on Wall Street's radar.

On October 20, 2025, TD Cowen & Co. initiated coverage on Allot with a Buy rating and a price target of $13, citing the company’s positioning to sustain double-digit profitable growth in the years ahead, driven by tailwinds in the cybersecurity market and its focus on an “underserved” small-business segment, which TD Cowen estimates offers a ~$10 billion total addressable market.

In other news, on October 23, Needham initiated coverage at Buy with a $12.50 target, pointing to the company’s security-first direction and momentum in carrier cybersecurity-as-a-service (CCaaS), a model that layers recurring subscription revenue on top of telco distribution.

Allot Ltd. (NASDAQ: ALLT), based in Hod HaSharon, Israel, provides network intelligence and cybersecurity solutions for telecom service providers and enterprises worldwide. Its products enable traffic analytics, network-based security services and application control across mobile and fixed networks. The company’s portfolio, marketed as Allot Smart and Allot Secure, uses deep packet inspection to provide traffic management and quality-of-experience optimization, application visibility and control, and network-based security (anti-malware, anti-phishing, DDoS/botnet mitigation) that carriers bundle as value-added services for consumer, SMB, IoT and enterprise customers.

While we acknowledge the potential of ALLT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.