Akamai Technologies Receives Double Upgrade from Morgan Stanley, Price Target Raised to $115
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Double Upgrade: Morgan Stanley analyst Sanjit Singh upgraded Akamai's rating from underweight to overweight and raised the price target to $115, reflecting market recognition of its future growth potential, which helped push the stock price up nearly 4%.
- Positive Market Reaction: Following the upgrade, Akamai's stock closed up 3.58% at $91.27 on Monday, indicating investor confidence in the company's transformation, particularly in its focus on cybersecurity and cloud computing.
- Revenue Growth Potential: Although Akamai has only seen mid- to single-digit revenue growth since the pandemic, analysts believe its pivot to cybersecurity and cloud services presents significant growth opportunities, potentially alleviating burdens from its legacy business.
- Strategic Transformation Signal: Analysts noted that Akamai's shift not only enhances its market competitiveness but may also lead to higher profitability in the future, although it still needs to demonstrate meaningful growth in revenue and profitability.
Analyst Views on AKAM
Wall Street analysts forecast AKAM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AKAM is 94.58 USD with a low forecast of 80.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
7 Buy
7 Hold
2 Sell
Moderate Buy
Current: 88.120
Low
80.00
Averages
94.58
High
115.00
Current: 88.120
Low
80.00
Averages
94.58
High
115.00
About AKAM
Akamai Technologies, Inc. is a cybersecurity and cloud computing company. The Company develops and provides solutions for global enterprises to build, secure and accelerate their applications and digital experiences. Akamai Connected Cloud, the Company's platform, is comprised of an edge and cloud architecture and underlying network for cloud computing, security and content delivery services. Its cloud computing services include compute, storage, networking, database and container management services that are required to build, deploy and secure applications and workloads. Its security solutions are designed to keep infrastructure, websites, applications, application programming interfaces and users safe from a multitude of cyberattacks and online threats while improving performance. Its content delivery solutions consist of Web and mobile performance focused solutions and media delivery solutions. It also specializes in serverless WebAssembly function-as-a-service (FaaS) technology.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
