Demystifying Akamai Techs: Insights From 7 Analyst Reviews

In the latest quarter, 7 analysts provided ratings for Akamai Techs AKAM, showcasing a mix of bullish and bearish perspectives.

The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $120.57, a high estimate of $150.00, and a low estimate of $81.00. This current average reflects an increase of 5.58% from the previous average price target of $114.20.

Diving into Analyst Ratings: An In-Depth Exploration

The analysis of recent analyst actions sheds light on the perception of Akamai Techs by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Akamai Techs. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Akamai Techs compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Akamai Techs's stock. This comparison reveals trends in analysts' expectations over time.

Capture valuable insights into Akamai Techs's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Akamai Techs analyst ratings.

About Akamai Techs

Akamai operates a content delivery network, or CDN, which entails locating servers at the edges of networks so its customers, which store content on Akamai servers, can reach their own customers faster, more securely, and with better quality. Akamai has over 325,000 servers distributed over 4,100 points of presence in more than 1,000 cities worldwide. The firm also offers security and cloud computing for its customers, and those businesses have grown to be bigger than the legacy CDN.

Understanding the Numbers: Akamai Techs's Finances

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Akamai Techs displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 3.06%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: Akamai Techs's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 16.2%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Akamai Techs's ROE stands out, surpassing industry averages. With an impressive ROE of 3.61%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Akamai Techs's ROA excels beyond industry benchmarks, reaching 1.65%. This signifies efficient management of assets and strong financial health.

Debt Management: Akamai Techs's debt-to-equity ratio is below the industry average at 0.99, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.