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UPDATE: FBN Securities Initiates Akamai Technologies at Outperform on Recent Positive Catalysts

Related AKAM
Benzinga's Top Upgrades, Downgrades For May 25, 2017
With Media Trends Unlikely To Improve, Baird Downgrades Akamai

In a report published by FBN securities, analyst Shebly Seyrafi initiated coverage on Akamai technologies (NASDAQ: AKAM) with an Outperform rating and $45 price target.

FBN securities reported that, “The company is the #1 player in the relatively fast-growing (~15% Y/Y, upside to 20% Y/Y) content delivery network (CDN) market, and the recent exit of AT&T (which will transfer its assets to AKAM) from CDNs is a slight positive. Too, AKAM has a rapidly growing cloud infrastructure business (60% rev.; up 20% Y/Y in FQ4). The stock has underperformed recently due to last quarter's slight revenue miss and due to a subsequent lowering of published estimates due to more taxes being recognized, but AKAM is aggressively investing for growth (it sees an 18% revenue CAGR through 2020 as it targets $5B in revenue that year, up from $1.4B last year; we model only an 11% CAGR) and current estimates already reflect the higher spend this year.”

Shares of Akamai Technologies closed at $34.67 on Tuesday.

Latest Ratings for AKAM

May 2017NomuraInitiates Coverage OnNeutral
May 2017BairdDowngradesOutperformNeutral
May 2017GuggenheimDowngradesBuyNeutral

View More Analyst Ratings for AKAM
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Posted-In: FBN SecuritiesAnalyst Color Initiation Analyst Ratings


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