Allot: Too Overhyped To Make Buys Worthwhile (Archive)
Allot’s growth story remains unproven, with flat revenues, slowing SECaaS momentum and stretched valuations.
This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.
Elevator Pitch
- Allot's overall revenue growth acceleration is yet to materialize, and unfavorable mix shifts are slowing EBIT margin improvement.
- There is no direct evidence that Sandvine's bankruptcy has benefited Allot, and I don't think commentary gives any confidence that this may happen either.
- Valuations appear expensive given flat revenue expectations, but the Verizon deal presents an upside risk for SECaaS revenue over the next year.
- Relative technical analysis shows a balanced fight between buyers and sellers on ALLT vs. SPX500.
Read the full article here.
Disclosures and Disclaimers
Past performance ≠ future results. Not investment advice. See full Disclaimer.
Comments ()