KeyBanc/Pacific Crest Downgrades Akamai Technologies (AKAM) to Sector Weight

KeyBanc/Pacific Crest downgraded Akamai Technologies (NASDAQ: AKAM) from Overweight to Sector Weight and removed its price target. Analyst Michael Bowen highlighted DIY pressure and lack of OTT visibility.

"We are downgrading AKAM to Sector Weight after the company lowered expectations again for its big two media customers, and its top six customers are all at risk of DIY. Ex-the Big 6, media revenue grew 11% y/y, but competition in the media segment is increasing and margins are moving lower near term," said Bowen.

"We are lowering our estimates to reflect near-term margin pressure, increased DIY pressure and continued lack of visibility regarding potential OTT-driven revenue acceleration. We ascribe a fair value of $46, which represents 7.1x our 2017 EBITDA estimate," added the analyst.

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 $58.09 yesterday.

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