Allot: Viable Speculative 'Buy' On Its Cybersecurity Growth

Myriam Alvarez 3.6K Followers Follow Summary Allot's carrier relationships give its cybersecurity business a practical route to grow through additional services, customer segments, and geographies. There are also some potential cross-selling opportunities to its network-intelligence customers. As such, I think their revenue mix is still in flux in many ways, but one thing appears to be consistent. Their recurring revenues keep increasing YoY. However, note that management didn't give us concrete margin guidance. So we have to wait and see if their revenue growth comes with margin improvements. But overall, I believe ALLT’s current valuation seems cheap compared to its sector. And since the underlying business is rapidly growing, I think it’s fair to be bullish. valentinrussanov/E+ via Getty Images Allot Ltd. ( ALLT ) is a technology company that assists telecom operators in managing network traffic and in offering their customers cybersecurity services. Although the majority of its revenue still comes from the AllotSmart product line, the This article was written by Myriam Alvarez 3.6K Followers Follow My name is Myriam Hernandez Alvarez. I received the Electronics and Telecommunication Engineering degree from the Escuela Politecnica Nacional, Quito, Ecuador, the M.Sc. degree in computer science from Ohio University, Athens, OH, USA, a graduate degree in Business Management from Universidad Andina Simon Bolivar, Quito, Ecuador, and the Ph.D. degree in computer applications from the University of Alicante, Spain.Disclosure: I collaborate professionally with Edgar Torres H, who is also an author on Seeking Alpha. Our analyses are conducted independently, and we adhere to Seeking Alpha's Shared Association Guidelines. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.