Morgan Joseph Starts Akamai Technologies (AKAM) at Buy; Leader in Value-Added Content Delivery

Morgan Joseph initiates coverage on Akamai Technologies (NASDAQ: AKAM) with a Buy. PT $37.

Morgan analyst says, "We believe content delivery will play a key role in the increased adoption of data-intensive applications and wireless devices, as consumers, businesses, and governments, in our view, will expect their cloud applications to function as smoothly and seamlessly as if they were operating on-premise. Given that Akamai is the leader in the CDN space and that its higher-margin, value-added solutions have gained significant traction in recent years, we believe the company is positioned for continued revenue and adjusted EBITDA growth. We also note that Akamai shares trade at a relative discount to the cloud infrastructure peer group, making them attractively valued, in our view. Akamai shares currently trade at approximately 7.6x our 2012E EV/EBITDA estimate, an approximate 20% discount to the average of its cloud infrastructure peers."

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 $30.94 yesterday.

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