Akamai Sensitive to Downturn – Analyst Blog
Source: http://www.zacks.com/stock/news/16348/Akamai+Sensitive+to+Downturn+-+Analyst+BlogPosted on Thursday, December 11th, 2008 | In Stocks to Watch
Akamai Technologies, Inc. (AKAM) is a global provider of distributed e-business infrastructure services and solutions. Its services include dynamic content and application delivery, application performance technologies, traffic management, etc. Akamai’s high-margin, value-added solutions such as Application Performance Solutions, Dynamic Site Solutions, and Stream OS are expected to drive revenue and margin expansion in the coming quarters.
Though Q3 2008 results were better than expected, Akamai has disappointed us as of late. We believe that as AKAM serves consumer focused companies, it is more sensitive to consumer spending than much of the IT space.
Akamai is facing growing competition and pricing pressure as new competitors enter the market. As such, we lowered our estimates for fiscal 2009 due to slowing revenue visibility at its verticals. We maintain a Hold rating on AKAM shares with a price target of $14.50.
Priyanka Poddar contributed to this report.
Read the full analyst report on AKAM
“AKAM” Free Stock Analysis: Buy? Sell? Hold?
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