UPDATE: D.A. Davidson Downgrades Akamai Technologies to Neutral on Multiple Positive Factors
In a report published Thursday, D.A. Davidson analyst Donna Jaegers downgraded the rating on Akamai Technologies (NASDAQ: AKAM) from Buy to Neutral, but reiterated the $50.00 price target.
In the report, D.A. Davidson noted, “Several positives support current valuation. After beating Q1 expectations, AKAM's stock has risen 28.5% and currently is valued at 11x EV/EBITDA and 22.3x adjusted pro forma 2013 EPS. We think strong media traffic has continued in Q2 as several content companies put more of their content online for TV Everywhere. We think AKAM's sales of security products have also been strong in Q2 as attack traffic has continued to run at 70%-90% over normal. We are raising our revenue estimate for Q2 slightly to $373.1 million, which is now at the higher end of AKAM's guidance range of $368-$378 million.”
Akamai Technologies closed on Wednesday at $46.36.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.