KeyBanc Downgrades Akamai Technologies - Read Why

  • 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 ReadAkamai To Acquire Guardicore For $600M To Beat Ransomware
  • Price Action: AKAM shares closed higher by 0.85% at 105.48 on Friday.
Market News and Data brought to you by Benzinga APIs
Comments
Loading...
date
ticker
name
Price Target
Upside/Downside
Recommendation
Firm
Posted In: NewsDowngradesAnalyst RatingsTechBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!