Deutsche Bank Upgrades Akamai To Buy Following Earnings

In a report published Wednesday, Deutsche Bank analysts upgrade

from Hold to Buy, while raising the price target from $73 to $79. The company reported in-line Q1 results, while issuing a "light" guidance for Q2. "[W]e see the nearterm capitulation in the stock as an attractive entry point into secular growth drivers in FY16+ in Cloud Security and Media Delivery… We see Media Delivery benefiting from growth drivers in Internet Video Streaming, Multi-Player Gaming, etc," the analysts said. Akamai reported revenues and EPS for Q1 in-line with the expectations, while guided to below consensus revenues and EPS for Q2. The company has attributed both the lackluster results and the guidance to tougher comps and Fx headwinds. Deutsche Bank expects FX to have a negative impact on the company's performance through the remaining quarters of 2015 as well. However, the analysts also expect to see "FY16+ growth drivers for AKAM's Media Delivery business in Internet HD and 4K Video Streaming, Multi-Player Gaming, etc. 2016 is also like to see meaningful spikes in Internet Web and Video traffic from the Summer Olympics, etc."