Akamai Price Target Cut By Analysts Post Q2 Beat To Reflect Headwinds - Akamai Techs (NASDAQ:AKAM)

Akamai Technologies, Inc AKAM clocked 6% revenue growth in the second quarter to $903 million, beating the consensus of $898 million. Adjusted EPS of $1.35 beat the consensus of $1.31.
Security and compute revenue represented most of the revenue in the second quarter and grew 26% Y/Y.
Needham analyst Alex Henderson reiterated a Hold rating on Akamai.
He thought Akamai had done a solid job of addressing currency and macro headwinds in its guidance but also noted that the risk to its most robust growth engine, International growth, remains high.
Domestic growth continues to be around 3%-6%.
AKAM looks challenged given its international exposure and slowing Security business.
RBC analyst Rishi Jaluria reiterated Outperform and cut the price target from $115 to $110.
AKAM reported disappointing 2Q results, with incremental FX and delivery headwinds leading to a reduced 2022 guide, he noted.
He highlighted that delivery traffic will likely be muted for several quarters and, to reduce costs, Akamai is turning away some customers with extreme peak traffic.
He also emphasized encouraging Linode commentary.
He also stressed that security deceleration suggested a continued slowdown in more established products.
He added that the guide did not assume an improving macro, and commentary suggested a worsening environment in some markets (e.g., Europe).
KeyBanc analyst Thomas Blakey reiterated Overweight and cut the price target from $123 to $116.
The re-rating reflected macro/slower traffic, FX, and aligned pricing actions.
Morgan Stanley analyst Keith Weiss cut the price target from $110 to $102 and reiterated an Equal Weight stating that the company's solid Q2 results with weaker than expected guidance underscores the shifting macro environment.
Weiss noted that mounting headwinds and organic growth deceleration hurt the total return equation in the near term.
DA Davidson analyst Rudy Kessinger slashed the price target to $115 from $125 but reiterated a Buy.
Kessinger noted Akamai's Guardicore and Linode are showing nice traction and will put upward pressure on organic growth.
Price Action: AKAM shares traded higher by 0.83% at $95.87 on the last check Wednesday.

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