A Closer Look at 13 Analyst Recommendations For Akamai Techs

Throughout the last three months, 13 analysts have evaluated Akamai Techs AKAM, offering a diverse set of opinions from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $114.08, a high estimate of $135.00, and a low estimate of $92.00. This current average represents a 12.74% decrease from the previous average price target of $130.73.

Understanding Analyst Ratings: A Comprehensive Breakdown

In examining recent analyst actions, we gain insights into how financial experts perceive Akamai Techs. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Akamai Techs. This offers insight into analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Akamai Techs compared to the broader market.
• Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.

To gain a panoramic view of Akamai Techs's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on Akamai Techs analyst ratings.

Unveiling the Story Behind 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.

A Deep Dive into Akamai Techs's Financials

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

Revenue Growth: Akamai Techs's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 7.78%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Information Technology sector.

Net Margin: Akamai Techs's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 17.77% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Akamai Techs's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.8% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.77%, the company showcases effective utilization of assets.

Debt Management: With a below-average debt-to-equity ratio of 0.99, Akamai Techs adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Significance of Analyst Ratings Explained

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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