Will the partnership create any synergies that could improve Radware's cost structure or operational efficiency?

Synergy & Cost‑Structure Outlook

The managed‑security‑services agreement with Tet gives Radware immediate access to a retail‑grade broadband footprint in the Baltics, a market where Telco‑grade security is still nascent. By leveraging Tet’s existing network, data‑center and billing infrastructure, Radware can ship its AI‑powered cloud‑protection suite with little incremental capex, effectively turning a pure‑play SaaS model into a hybrid “service‑plus‑distribution” channel. The partnership should therefore generate economies of scale in both R&D (shared threat‑intel feeds across a larger customer base) and delivery (lower marginal cost per protected endpoint). Over the next 12‑18 months we can expect a modest improvement to gross margins—historically around 70 %—potentially nudging them into the mid‑70 % range if the Tet roll‑out proceeds as scheduled.

Trading Implications

Technically, RDWR has been testing a higher‑low range (≈ $23‑$27) with the 20‑day SMA still above the 50‑day SMA, indicating a short‑term bullish bias. The partnership announcement lifted sentiment to +60, already priced into a 3‑5 % rally. If management can demonstrate incremental ARR of at least $12‑$15 M from Tet (≈ 5‑6 % of FY‑24 revenue) and confirm margin uplift, the stock could break the $28 resistance and target the $32‑$34 corridor within the next quarter. Conversely, if integration costs or a slower-than‑expected ISP adoption dampen the expected synergies, the price may retrace to the $22‑$24 support zone. In practice, a modest “buy‑on‑dip” near $23.5–$24, with a stop loss around $21, aligns with the upside potential while limiting exposure to execution risk.