KeyBanc Upgrades Akamai Technologies After Analyst Day

At its latest Analyst Day, Akamai Technologies, Inc. AKAM provided significant insight into its business. In particular, its large product category revenue streams within Edge Technologies and Security Technologies, according to KeyBanc Capital Markets.

The Akamai Technologies Analyst: Brandon Nispel upgraded the rating for Akamai Technologies from Sector Weight to Overweight, while establishing a price target of $119.

The Akamai Technologies Thesis: Management surprised to the upside by guided to 30%+ growth for Edge Applications, Nispel said in the upgrade note.

“AKAM's LT model calls for a 3-5 year revenue growth CAGR of 6-10% comprised of 2-5% Edge Technologies, and 20%+ Security Technologies," he wrote. "Over the next 3-5 years, consensus expects 7% CAGR comprised of <1% Edge Technologies growth and <18% Security Technology growth where it appears consensus discounts AKAM's' ability to execute within both segments.”

Although the company faces significant competition in both Edge and Security technologies, both businesses have a large total addressable market of more than $47 billion, “in which we see ample opportunity for all,” the analyst further mentioned.

AKAM Price Action: Shares of Akamai Technologies had risen by 1.58% to $97.46 at the time of publication Tuesday.

(Photo: Akamai Technologies)