Analyst Fatima Boolani from Citi reiterated a Hold rating on Akamai (AKAM – Research Report) and keeping the price target at $95.00.
Fatima Boolani has given her Hold rating due to a combination of factors surrounding Akamai’s current market position and future outlook. The company’s recent performance and below-consensus forecasts for the upcoming quarters have raised concerns among investors. Despite unveiling long-term financial targets, the goals appeared underwhelming, and Akamai’s success hinges on executing significant changes in its go-to-market strategy amidst uncertainties and competitive pressures in its key markets.
Moreover, the company’s valuation reflects skepticism, with metrics trending near historical lows. Investors remain cautious, as Akamai needs to demonstrate flawless execution in its strategic overhaul to achieve growth re-acceleration. The company’s ability to regain investor confidence is crucial, especially in its Security and Compute segments, which have faced execution challenges despite their potential for higher growth and demand. These factors collectively contribute to the Hold rating, indicating a cautious stance until clearer evidence of successful execution and market share gains emerges.
AKAM’s price has also changed moderately for the past six months – from $99.515 to $81.550, which is a -18.05% drop .