Michael Elias, an analyst from TD Cowen, maintained the Hold rating on Akamai. The associated price target is $104.00.
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Michael Elias has given his Hold rating due to a combination of factors surrounding Akamai’s recent performance and future outlook. Despite Akamai reporting stronger-than-expected third-quarter results and providing optimistic guidance for the fourth quarter and 2025, Elias remains cautious. The company has shown promising progress, particularly with its recent partnerships with major hyperscalers, which could enhance its long-term prospects.
However, Elias is mindful of the ongoing transformation Akamai is undergoing, which necessitates significant investment and might impact short-term margin expansion. While the company’s security and compute segments show potential, the adjustments in growth guidance and the timing of revenue recognition for large contracts introduce some uncertainty. Therefore, Elias maintains a Hold rating, acknowledging the positive momentum but also recognizing the need for further stabilization and execution in the current investment cycle.
In another report released on November 11, Citi also maintained a Hold rating on the stock with a $88.00 price target.