Wedbush Cuts Price Target on Akamai (AKAM) to $36

Wedbush Morgan lowers its price target on Akamai Technologies (Nasdaq: AKAM) from $45 to $36. The firm maintains a Buy rating.

The firm mentions that Akamai's management indicated that a challenging economic environment was the main reason for its soft earnings, but Wedbush believes that "competition and pricing were also factors." At the same time, Wedbush said it will continue to recommend shares of Akamai due to its position as a leader in its industry, "leverage toward secular Internet growth trends, and valuation..."

Wedbush lowered its FY08 revenue estimate on Akamai from $837 million to $785 million and its EPS estimate from $1.72 to $1.63. The Street estimates are for sales of $816.72 million and for EPS of $1.70.

With shares of Akamai down more than 25% to about $23.30 today, Wedbush's lowered $36 price target still represents potential upside of more than 50% from current levels.

Akamai Technologies, Inc. provides services for accelerating the delivery of content and applications over the Internet.

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