NEW YORK (
(AKAM - Get Report)
gains more fans on its way up.
Merriman Curran analyst Richard Fetyko upgraded the stock to buy in a research note Wednesday citing market share stability and the ever-rising tide of Internet traffic.
The Cambridge, Mass. Internet freight hauler -- or content delivery network operator -- has seen its shares rise more than 8% this year amid a period when tech investors were selling heavily.
Fetyko says the price war among Net delivery shops has reached a truce, and that competitors like
(LVLT - Get Report)
(T - Get Report)
have not had success cutting into Akamai's business.
Akamai also managed to bid low enough to win a contract with
(NFLX - Get Report)
, as the video rental company moves toward online delivery, says Fetyko. The Netflix win illustrates how it may be possible for Internet traffic gains to more-than offset the pace of price cuts by Akamai.
The bullish scenario remains the same for Akamai: The Internet is growing.
Or as Fetyko puts it: "More web-connected devices like the (
) iPad, mobile devices, IPTV, and HD content will continue to drive volumes up dramatically in the next two-three years.
Akamai shares were up 2% to $27.92 in premarket trading Wednesday.
-- Written by Scott Moritz in New York.
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