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The Real Reasons For Akamai's Gargantuan Move? Buybacks And Insider Buys

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Guggenheim, DA Davidson Bullish On Akamai After Q4 Report
Earnings Scheduled For February 12, 2019
Akamai: Good Company But Not At This Price (Seeking Alpha)

B. Riley upgraded Akamai Technologies, Inc. (NASDAQ: AKAM) from Neutral to Buy on Wednesday morning amid an earnings and sales beat. On Tuesday night, the company reported fourth quarter earnings 10 cents above estimates and revenue a little over $10 million above consensus.

Amid a slew of analyst activity -- UBS and Deutsche Bank maintained Buys, while Craig-Hallum upgraded shares to a Buy -- B. Riley's Sameet Sinha hiked his view on the stock.

Sinha upgraded Akamai and raised his price target to $60 from $54, using a 10.0 times AEBITDA multiple, which was previously at 9 times.

Despite a next-quarter guide below expectations, Sinha said the basis of his upgrade was that Akamai's media business risk has been "quantified, expenses have been reined in and valuation is nominal."

Why The Huge Move? Buybacks And Insider Buys

Along with this quantified risk, Sinha said a large buyback and insider purchases are key catalysts for the stock's outsized move.

Shares are up over 23 percent on Wednesday.

Latest Ratings for AKAM

DateFirmActionFromTo
Feb 2019Morgan StanleyMaintainsOverweightOverweight
Feb 2019KeyBancMaintainsOverweightOverweight
Feb 2019Credit SuisseMaintainsNeutralNeutral

View More Analyst Ratings for AKAM
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