Collins Stewart Cuts Price Targets on Akamai Technologies (AKAM) on Continued Fears
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Price: $102.19 +0.42%
Rating Summary:
16 Buy, 19 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
16 Buy, 19 Hold, 3 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Collins Stewart is reaffirming its Hold rating and is lowering its price target from $33 to $31 on shares of Akamai Technologies (NASDAQ: AKAM) following the release of its quarterly earnings.
Shares are trading up 15 percent on yesterdays news, but the firm is still concerned that media segment volume growth will remain to favor the carriers over stand alone CDN and much lower priced CDN competitors.
An analyst at Collins comments, "Following the past few quarters of rapidly decelerating top-line growth from more than 20% to now 11% and with consistent negative estimate revisions since the analyst event last year, investors expectations clearly reflected concerns that the carriers and other CDN competitors are beginning to have a more meaningful impact upon the volume sensitive business and soon the Value Added Solutions business. Although we did not witness incremental pressures this quarter, we remain cautious on the business and the shares."
The company repurchased just under 7 million shares during the quarter, and Collins Stewart forecasts continued repurchases considering its $1.2 billion in cash and no debt.
The firm is raising its FY11 ESP estimate from $1.45 to $1.47 and reiterated its FY12 estimate of $1.62.
For more ratings news on Akamai Technologies click here and for the rating history of Akamai Technologies click here.
Shares of Akamai Technologies closed at $23.78 yesterday.
Shares are trading up 15 percent on yesterdays news, but the firm is still concerned that media segment volume growth will remain to favor the carriers over stand alone CDN and much lower priced CDN competitors.
An analyst at Collins comments, "Following the past few quarters of rapidly decelerating top-line growth from more than 20% to now 11% and with consistent negative estimate revisions since the analyst event last year, investors expectations clearly reflected concerns that the carriers and other CDN competitors are beginning to have a more meaningful impact upon the volume sensitive business and soon the Value Added Solutions business. Although we did not witness incremental pressures this quarter, we remain cautious on the business and the shares."
The company repurchased just under 7 million shares during the quarter, and Collins Stewart forecasts continued repurchases considering its $1.2 billion in cash and no debt.
The firm is raising its FY11 ESP estimate from $1.45 to $1.47 and reiterated its FY12 estimate of $1.62.
For more ratings news on Akamai Technologies click here and for the rating history of Akamai Technologies click here.
Shares of Akamai Technologies closed at $23.78 yesterday.
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