Akamai Sale Rumor Cuts No Ice With Macquarie Analyst
Rumors that Akamai Technologies (NASDAQ: AKAM) might become a takeover target drove the shares up two percent earlier this week, but the idea cuts no ice with Macquarie analyst Kevin Smithen.
"We don't believe the M&A talk," Smithen said in a note Thursday, maintaining a Neutral rating, but raising 2014 earnings estimate to $2.22 per share, from $2.20.
Co-founder and Chief Executive Tom Leighton "intends to build the company into a major player and we'd be very surprised if the company were to consider a sale at this point," Smithen said.
Furthermore, there's just a handful of major companies with potential interest in both Akamai's media and security segments, according to Smithen.
The recent rumors aren't the first wave of such speculation. Akamai shares spiked in December on speculation that AT&T was courting Akamai.
Akamai changed hands recently at $61.20 per share, up 0.21 percent.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.