Akamai Technologies (AKAM): Buy the Blowup - Piper Jaffray

August 9, 2016 8:14 AM EDT
Get Alerts AKAM Hot Sheet
Price: $58.66 +1.72%

Rating Summary:
    19 Buy, 16 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 26 | Down: 28 | New: 38
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Piper Jaffray analyst, Mike Olson, reiterated his Overweight rating on shares of Akamai Technologies (NASDAQ: AKAM) along with his price target of $64. AKAM is down 13% since reporting Q2 (7/26) and providing below Street Q3 guidance due to the impact of two major customers taking traffic in-house. While Media Delivery is weak, the analyst expects strong continued Performance & Security growth.and a Media delivery re-acceleration in '17; if for no other reason than easier comps.

Excluding the company's six largest Internet platform customers which represent 11% of revenue, Akamai is growing 15% y/y. Historically, buying AKAM on guidance related pullbacks has proven to be a favorable strategy, with a 16% average six month upward move following five double digit earnings related drops in the stock over the past five years.

The analyst also believes Akamai's core non-security business is being undervalued, when accounting for a $2B-$3B valuation for the security segment.

For an analyst ratings summary and ratings history on Akamai Technologies click here. For more ratings news on Akamai Technologies click here.

Shares of Akamai Technologies closed at $50.21 yesterday.

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