Pacific Crest Analyst Downgrades Akamai Technologies, Inc. (AKAM)
Pacific Crest analyst Michael Bowen downgrades Akamai Technologies, Inc. (NASDAQ:AKAM) to Sector Weight and revokes his price target.
The analyst cites DIY pressure and lack of OTT visibility as concerns for the company.
Bowen explains, “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.”
The analyst lowers his estimates in order to reflect “near-term margin pressure, increased DIY pressure and continued lack of visibility regarding potential OTT-driven revenue acceleration.”
According to TipRanks, Michael Bowen is ranked #3,219 of 4,083 analysts. He maintains a success rate of 66% and realizes an average loss of (-3.3%).