Akamai (AKAM) received a Hold rating and a $70 price target from Evercore ISI analyst Kenneth Talanian on March 21. The company’s shares closed on Friday at $71.23.
“We are initiating on AKAM with an In Line rating and $70 price target. Based on our expert conversations, our price / traffic trend analysis, and the backdrop of increasing competition, we remain fairly cautious on our growth estimates for AKAM’s CDN business. We see greater potential upside for growth in the company’s security business which we expect to grow in the mid-20%’s to ~$822M in F19. Our analysis implies new business for the year may slow but may be representative of initial conservatism on the part of management. At our current estimates we believe the stock is fairly valued at around $70 based on both a DCF and our sum-of-the-parts analysis. See below/within for more detail.”
According to TipRanks.com, Talanian is a 5-star analyst with an average return of 20.5% and a 82.3% success rate. Talanian covers the Technology sector, focusing on stocks such as CyberArk Software, Proofpoint Inc, and Symantec Corp.
Akamai has an analyst consensus of Moderate Buy, with a price target consensus of $80.
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Akamai’s market cap is currently $11.6B and has a P/E ratio of 40.24. The company has a Price to Book ratio of 3.64.
Based on the recent corporate insider activity of 61 insiders, corporate insider sentiment is negative on the stock. Earlier this month, Monte Ford, a Director at AKAM sold 24,721 shares for a total of $1,790,048.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
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.