Akamai Technologies (AKAM) Coming Analyst Day Could be a Catalyst - Piper Sandler

Piper Sandler analyst James Fish reiterated an Overweight rating and $120.00 price target on Akamai Technologies (NASDAQ: AKAM) noting that the company's focus on Gaming and Security is properly placed despite the tough 2021 environment. The selloff could make the 2/25 analyst day a positive catalyst.

The analyst stated "shares of AKAM are down AH following only modest upside in Q4 and a relatively inline 2021 guidance overall against investors' expectations. Positively, Akamai reported security upside even when normalizing results for FX and M&A, media traffic across streaming and gaming remain growth drivers, and the sales reorganization should enable greater efficiencies and security focus that could enable +20% sustainable growth in our view. Akamai intends to focus on security and edge compute, including with developers over the coming years. However, Q4 was marked by only modest Q4 upside compared to prior years (including EPS). Web CDN remains pressured with troubled verticals accounting for ~40% of the division and the zero-overage transition about half-way through. This, along with normalizing CDN growth rates, leads to implied 2021 CDN guide down Y/Y CC. The Feb 25th Analyst Day should carry material details and acts as a catalyst".

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 $108.98 yesterday.

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