KeyBanc Downgrades Akamai Technologies - Read Why - Akamai Technologies (NASDAQ:AKAM)

KeyBanc analyst Brandon Nispel downgraded Akamai Technologies Inc AKAM to Sector Weight from Overweight without a price target following the company's acquisition of GuardiCore.
Dilution from the acquisition "details" the near-term view on the shares, Nispel notes.
The thesis that Akamai would utilize its "significant" free cash flow position to return capital to shareholders is unlikely, Nispel says.
He believes "better security growth at the expense of margins is a poor trade as investors are unlikely to pay a premium for inorganic growth."
Also Read: Akamai To Acquire Guardicore For $600M To Beat Ransomware
Price Action: AKAM shares closed higher by 0.85% at 105.48 on Friday.

Momentum22.73

Growth44.09

Quality7.81

Value47.13

Short

Medium

Long

KeyBanc Downgrades Akamai Technologies - Read Why