Citigroup Maintains Akamai Rating And PT Amid Q3 Report

When Akamai Technologies, Inc. AKAM reports its Q3 results on October 27, Citigroup will be looking for $250MM in revenue, $112MM in EBITDA, and $0.34 in normalized EPS, generally in-line with the Street at $250MM in revenue, $114MM in EBITDA, and $0.33 in normalized EPS. “Our 3-Part Time Series AKAM Core Hold Thesis is: 1) Near term, we view Akamai as a beneficiary of the recovery in Online Retail; 2) Medium term, we believe that the overall growth outlook for eCommerce and ‘Net Advertising may not be fully factored into Street ests; and 3) Long term, HD Video could emerge as a new Secular Growth driver for Akamai,” Citigroup writes, noting that it reiterates its Hold rating and $42 price target. Akamai currently trades at $47.88.