FBN Securities Initiates Coverage on Akamai Technologies at Outperform and $45 PT

In a report published by FBN securities, analyst Shebly Seyrafi initiated coverage on Akamai technologies AKAM with an Outperform rating and $45 price target. FBN securities reported that, “Initiating with an Outperform/$45PT. We are initiating coverage of Akamai Technologies (AKAM) with an Outperform rating and $45PT. The company is the #1 player in the relatively fast-growing (~15% Y/Y, upside to 20% Y/Y) content delivery network (CDN) market, and the recent exit of AT&T (which will transfer its assets to AKAM) from CDNs is a slight positive. Too, AKAM has a rapidly growing cloud infrastructure business (60% rev.; up 20% Y/Y in FQ4). The stock has underperformed recently due to last quarter's slight revenue miss and due to a subsequent lowering of published estimates due to more taxes being recognized, but AKAM is aggressively investing for growth (it sees an 18% revenue CAGR through 2020 as it targets $5B in revenue that year, up from $1.4B last year; we model only an 11% CAGR) and current estimates already reflect the higher spend this year.” Shares of Akamai Technologies closed at $34.67 on Tuesday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorInitiationAnalyst RatingsFBN Securities
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!