Get To Know 'Pure-Play' Akamai

Loading...
Loading...
In a report published Thursday, Pacific Crest analyst Michael Bowen resumed coverage of
Akamai Technologies, Inc
AKAM
, with an Overweight rating and a price target of $91. Akamai appeared poised to benefit from growing data consumption, over-the-top (OTT) video viewing and security concerns on the internet. Analyst Michael Bowen added, "An expanding addressable market, Internet traffic growth and network build-out all point to near- and long-term growth." Apart from being the largest pure-play content delivery network (CDN), Akamai was also expanding into new areas offering significant growth opportunity, Bowen said. In the report Pacific Crest noted, "Of Akamai's installed customer base, 44% buy only one solution, which we believe provides potential for Akamai to cross-sell new products and continue its leadership in the CDN space." Akamai recently lowered its expectations for media revenue growth and margin. This reset provided investors "a compelling entry point," Bowen stated, explaining that "long-term traffic growth and adjusted EBITDA margin expansion could significantly improve from current levels." Based on the findings of a proprietary traffic tracking system, Bowen concluded that the current media traffic levels could generate media revenue of $239.1 million, as compared to the consensus estimate of $248.1 million, as well as performance and security revenue of $270.6 million, versus the consensus estimate of $254.1 million.
Loading...
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: Analyst ColorInitiationAnalyst RatingsPacific Crest
We simplify 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!

Loading...