The Rossoneri claimed a 2-2 draw on Saturday evening, with Balotelli scoring both goals for his side.
The 23-year-old has scored six goals in the league this season and three times in the Champions League, and Allegri is pleased that he is showing a more composed side to his game in recent weeks.
"I think Mario is very serene at the moment; he played well in both halves. He still has margin for improvement but he can be devastating," he told reporters.
Milan are currently eighth in the Serie A table.