Needham Says Akamai Posts Impressive Q4 Results, Well Positioned For 2020
Akamai Technologies, Inc. (NASDAQ:AKAM) reported upbeat results for the fourth quarter.
Heading into the new year, the company seems poised to benefit from an increase in demand due to world events like the U.S. elections and the Olympics, according to Needham.
Alex Henderson maintained a Buy rating for Akamai Technologies, raising the price target from $102 to $112.
Akamai Technologies’ fourth-quarter results and full-year guidance show strength across the board, Henderson said in the note.
Security remains a critical driver of the company’s growth and profitability, the analyst mentioned. The segment generated revenue of $238 million in the fourth quarter, up 29% year-on-year and significantly ahead of estimates.
Akamai Technologies also recorded strong International revenue, contributing 42% of total revenue for the quarter. The International business has become a “critical strategic advantage” for the company, Henderson said.
Akamai Technologies recorded strong Internet Platform Customer revenue of $52 million, up 20% year-on-year and substantially higher than expectations.
Revenue excluding Internet Platform Customers also accelerated, which could have been “particularly gratifying” since the company is well positioned to benefit from the upcoming launches of several OTT (over-the-top) services as well as from the strong event cycle in 2020, the analyst wrote.
Shares of Akamai Technologies were up 0.71% to $97.05 at time of publication.
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.