Akamai's Second Half Of 2024 To Benefit From Major Events And Data Center Additions: Analyst
Portfolio Pulse from Lekha Gupta
Guggenheim analyst Raymond McDonough has upgraded Akamai Technologies Inc (AKAM) to Neutral from Sell. McDonough sees risk to Q3 and Q4 FY23 top-line estimates, with potential downside to the Compute business. However, he also sees a 2%-3% potential upside to FY24 estimates, even if H2 FY23 results come slightly below expectations. The analyst is bullish on expected new business growth in the Security business, the utilization of incremental data center additions to drive Compute results, and the Delivery segment benefiting from H2 FY24 events.
October 26, 2023 | 7:06 pm
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NEUTRAL IMPACT
Akamai Technologies has been upgraded to Neutral from Sell by Guggenheim analyst Raymond McDonough. Despite risks to Q3 and Q4 FY23 estimates, there is potential upside to FY24 estimates. The analyst is bullish on new business growth in the Security business.
The upgrade from Sell to Neutral indicates a more positive outlook for Akamai Technologies. However, the analyst sees risks to Q3 and Q4 FY23 estimates, which could negatively impact the stock. On the other hand, the potential upside to FY24 estimates and bullish outlook on the Security business could drive the stock higher.
CONFIDENCE 85
IMPORTANCE 75
RELEVANCE 100