Lehman Optimistic on Internet Infrastructure Services Sector - TheStreet

The Internet infrastructure services industry has hit its bottom and is currently in a transition stage, according to a report issued Wednesday by

Lehman Brothers

.

The report named

Akamai Technologies

(AKAM) - Get Report

,

Digex

(DIGX)

, and

Exodus Communications

( EXDS) as investors' best bets in the field because of their long-term appreciation potential.

Lehman said "a large and growing market, recurring revenue stream, high margins and low capital intensity lead us to believe these are good business models." The report also indicated that the sector's fundamentals should begin improving late in 2001.

Shares of Akamai were up $1.38, or 5.8%, to $25.13 in recent

Nasdaq

trading. Exodus fell $1.38, or 6.4%, to $20.13, and Digex was unchanged at $24, also on the Nasdaq.