Akamai: Buy Rated on Security and Cloud Growth, Easing Delivery Headwinds, and Emerging AI Inference Upside

Analyst Sanjit Singh of Morgan Stanley maintained a Buy rating on Akamai, with a price target of $115.00.

Sanjit Singh has given his Buy rating due to a combination of factors tied to Akamai’s evolving business mix and improving growth profile. He highlights that, although the legacy Delivery segment is still shrinking, the rate of decline is expected to ease meaningfully over the next several years, helped by industry consolidation, more disciplined pricing, and incremental traffic from major live events such as the World Cup and Winter Olympics. Singh also underscores that investor sentiment has turned more constructive as the market recognizes both the recent momentum in Akamai’s public cloud offerings and the structural support these trends provide to the company’s overall growth outlook.

Sanjit Singh’s rating is based on the view that Akamai’s security and cloud businesses can sustain attractive growth, positioning the company to benefit from rising demand for secure and performant edge-based services. He sees particular upside in the Akamai Inference Cloud, arguing that the firm’s established global edge network offers a strategic advantage for AI inference workloads and could justify a higher valuation multiple if execution is strong. While acknowledging remaining investor questions around the pace of Delivery stabilization and the timing of the inference opportunity, Singh believes current expectations and valuation are conservative relative to Akamai’s potential to improve its growth trajectory and expand margins, supporting his Buy recommendation.

In another report released yesterday, TipRanks – OpenAI also reiterated a Buy rating on the stock with a $110.00 price target.