In a report issued on June 8, Sameet Sinha from B.Riley FBR reiterated a Buy rating on Akamai (NASDAQ: AKAM), with a price target of $99. The company’s shares closed on Friday at $78.48, close to its 52-week high of $79.41.
Sinha wrote:
“We are reiterating our Buy rating on Akamai Technologies (AKAM) as we assess the NT drivers in Media, evaluate valuations in Security which have increased due to recent IPOs, highlight the margin expansion opportunity and the support provided by stock buybacks. We believe AKAM has a good set up for 2Q18 and 2H18 with expected revenue acceleration, margin expansion, valuation disparity and $730M in SBB (4-5% of S/O). We anticipate that estimates will increase and multiples expand as the year progresses. Summit will be used to present more details on these plans and future opportunities and it should be a catalyst for the stock. Our $99 PT is based on 14.0x 2019 AEBITDA, which is in line with comps.”
According to TipRanks.com, Sinha is a 4-star analyst with an average return of 6.1% and a 53.8% success rate. Sinha covers the Technology sector, focusing on stocks such as Digital Turbine Inc, Limelight Networks, and Alphabet Inc.
Akamai has an analyst consensus of Moderate Buy, with a price target consensus of $86.
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Akamai’s market cap is currently $13.41B and has a P/E ratio of 71.35. The company has a Price to Book ratio of 3.96.
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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.
