In a report issued on January 7, Sameet Sinha from B.Riley FBR maintained a Buy rating on Akamai (AKAM), with a price target of $105. The company’s shares closed yesterday at $62.45.
Sinha said:
“We expect this acquisition to bolster the App protection and Employee/Customer protection solution sets at AKAM. Janrain’s products are particularly relevant to Media customers where login authentication and security are paramount to the user experience. As end users are increasingly leveraging a single set of login credentials across multiple sites and devices, Janrain’s cloud-based product allows companies to manage these identities/ authentication in real-time. Akamai anticipates to close the transaction in January and is expected to be dilutive to 2019 non-GAAP EPS by $0.05-$0.06. From a revenue perspective, we expect this solution to scale nicely at AKAM as potentially Janrain was hampered by a small sales team. The deal will ease the tough comps in 2019 and is expected to be accretive in 2020, with no impact to the prior 2020 non-GAAP operating margin target of 30%.”
According to TipRanks.com, Sinha is a 4-star analyst with an average return of 2.8% and a 47.8% success rate. Sinha covers the Technology sector, focusing on stocks such as Digital Turbine Inc, Limelight Networks, and Brightcove Inc.
Akamai has an analyst consensus of Moderate Buy, with a price target consensus of $83.20, which is a 33.2% upside from current levels. In a report released yesterday, Piper Jaffray also maintained a Buy rating on the stock with a $84 price target.
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The company has a one-year high of $83.08 and a one-year low of $57.18. Currently, Akamai has an average volume of 1.99M.
Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is negative on the stock.
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Akamai Technologies, Inc. engages in the provision of cloud services for delivering, optimizing and securing content and business applications over the Internet. Its products offers web and mobile performance solutions, cloud security solutions, enterprise solutions, network operator solutions, media delivery solutions and services and support solutions.
