Akamai Technologies (AKAM) Mentioned Positively at Citi, PT Raised to $112

Citi analyst Fatima Boolani raised the price target on Akamai Technologies (NASDAQ: AKAM) to $112.00 (from $105.00) while maintaining a Neutral rating.

The analyst comments "

We are positive on AKAM acquiring select Lumen CDN customer contracts and see this development stabilizing and perhaps even reversing delivery segment malaise, while providing optionality for both incremental profitability and cross-sell into higher-margin SKUs (security, acceleration). Based on convos with both IR teams, we learned that transaction terms were fair, there is “at least 20%” customer overlap, and acquired customers largely skew traditional long-form media. While investors may view this as more commodity traffic, we think AKAM can extract efficiencies just by virtue of higher platform utilization and traffic consolidation – factors we think are conservatively managed in raised CY24 estimates. We’re lifting our estimates and PT to $112 on higher forecasts and a modest raise to target multiples given confidence in CY24 upside drivers, but staying Neutral until organic security (key to durable multiple re-rating) sees consistent upside, and compute segment (against heavy recent capex) delivers more palpable returns."

You May Also Be Interested In

• JPMorgan Upgrades Akamai Technologies (AKAM) to Neutral 'on Account of Confidence in Revenue Reacceleration'
• Goldman Sachs Positive on SanDisk (SNDK): 'We expect the stock to hold its gains'
• Yeti Holdings Inc. (YETI) PT Raised to $56 at Raymond James