KeyBanc Upgrades Akamai Technologies After Analyst Day
At its latest Analyst Day, Akamai Technologies, Inc. (NASDAQ:AKAM) provided significant insight into its business. In particular, its large product category revenue streams within Edge Technologies and Security Technologies, according to KeyBanc Capital Markets.
The Akamai Technologies Analyst: Brandon Nispel upgraded the rating for Akamai Technologies from Sector Weight to Overweight, while establishing a price target of $119.
The Akamai Technologies Thesis: Management surprised to the upside by guided to 30%+ growth for Edge Applications, Nispel said in the upgrade note.
“AKAM's LT model calls for a 3-5 year revenue growth CAGR of 6-10% comprised of 2-5% Edge Technologies, and 20%+ Security Technologies," he wrote. "Over the next 3-5 years, consensus expects 7% CAGR comprised of <1% Edge Technologies growth and <18% Security Technology growth where it appears consensus discounts AKAM's' ability to execute within both segments.”
Although the company faces significant competition in both Edge and Security technologies, both businesses have a large total addressable market of more than $47 billion, “in which we see ample opportunity for all,” the analyst further mentioned.
AKAM Price Action: Shares of Akamai Technologies had risen by 1.58% to $97.46 at the time of publication Tuesday.
(Photo: Akamai Technologies)
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