Analyst Madeline Brooks of Bank of America Securities maintained a Hold rating on Akamai (AKAM – Research Report), retaining the price target of $100.00.
Confident Investing Starts Here:
- Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
- Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter
Madeline Brooks’s rating is based on Akamai’s recent performance and future growth prospects. The company reported a strong first quarter with revenue and earnings surpassing expectations, driven by robust delivery revenue. However, the security and compute segments did not meet expectations, and the guidance for the second half of the year suggests slower growth due to macroeconomic uncertainties and currency fluctuations.
Despite positive trends in traffic and new product initiatives, such as the Firewall for AI and cloud inference solutions, these innovations will take time to significantly impact overall growth. Additionally, the anticipated slowdown in the security segment’s growth and reliance on external factors like the TikTok decision contribute to a cautious outlook. While long-term growth opportunities remain promising, the current transition phase and potential headwinds justify maintaining a Hold rating.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $90.00 price target.