S&P LOWERS OPINION ON AKAMAI TECHNOLOGIES SHARES TO HOLD FROM BUY, ON VALUATION (S&P Capital IQ) The shares have risen by a third from an intra-day low set over the past month, and we now see them as fairly valued. Our DCF-driven 12-month target price remains $40. We were encouraged by AKAM's Q2 results and Q3 guidance provided three weeks ago, indicating healthy revenue growth and gross margins. We believe AKAM is well positioned to capitalize on multiple strong fundamental drivers, including online video, cloud computing, mobile and security. However, we think the stock, after recent significant gains, largely reflects these and other positives.
Good for you Buffet. S&P since I have looked at their research concerning Akamaii is very conservative, but I agree that price has already risen a lot since the last catalyst Q2 earnings.I think this new announcement of AT&T scrapping their CDN business and choosing between AKAM and LLNW is very strange for one reason check AT&Ts message board and news nothing about it.It could be a rumor or the start of negotiations which could take months to complete.