The firm increased its price target on the content delivery and cloud infrastructure services provider to $86 from $72.
For full year 2016 D.A. Davidson is introducing a revenue estimate of $2.68 billion, an 18% year-over-year growth rate, and earnings of $3.27 per share, a 20% increase from its 2015 earnings estimate.
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The firm increased its numbers on Akamai as it is expecting higher operating leverage.
"We view the company's technology as significantly differentiated in the market, both on the CDN side of the business and on the security and performance side. The company's ability to deploy capabilities at the edge of the network is one such differentiator. We believe its strong balance sheet and solid cash flow generation also offer it a competitive advantage in the market," D.A. Davidson said.
The firm maintained its "buy" rating on the stock.
Separately, TheStreet Ratings team rates AKAMAI TECHNOLOGIES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AKAMAI TECHNOLOGIES INC (AKAM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."