Akamai (AKAM) - Get Akamai Technologies, Inc. Report was rising after the cloud services provider topped analysts' earnings estimates, leading Wall Street to issue bullish notes on the stock Wednesday.
Akamai is the largest provider of content delivery network services (CDN) and it operates a global network of servers that transmit streaming content.
Guggenheim analyst Robert Gutman raised his price target to $110 from $98 while maintaining his buy rating on the stock, saying that Akamai's results were well ahead of estimates and that the consensus estimates for the full year may prove to be too conservative.
This view is due to the “ongoing high pace of capacity development and positive trends in security” as well as the trend toward streaming services for which Akamai “remains well positioned for further gains through 2020.”
Brandon Nispel at KeyBanc maintained a sector-weight rating, and while he does not have a price target sees fair value for the company at $97 a share.
Nispel sees “upside potential to the high end of AKAM’s guidance range but believe buy-side expectations are higher than ours.” The analyst however does see the stock as being expensive at current levels as KeyBanc has trouble seeing “material upside to estimates or valuation.”
Piper Sandler analyst James Fish was also bullish on Akamai due to the opportunity from streaming services as the company is “clearly seeing a benefit already from Disney+ that will only compound when Disney+ expands into internationally in 2020-21.” The proliferation of competing streaming services will provide additional tailwinds, Sandler wrote.
Piper Sandler maintained its overweight rating while raising its price target to $114 from $103.
Analysts at Morgan Stanley raised their price target to $112 from $111, while RBC Capital lifted its price target to $93 from $91.
Akamai shares rose 3% to $99.31 on Wednesday.