Contrary to widespread investor skepticism around the sustainability of Akamai Technologies, Inc. (NASDAQ: AKAM)'s growth and margin expansion, KeyBanc Capital Markets said its May data tracker indicates solid growth and potential upside to 2019 consensus estimates.
Brandon Nispel maintained an Overweight rating on Akamai Technologies with an unchanged $91 price target.
Global visitors per minute rose 30.5-percent year-on-year in May, Nispel said in a Tuesday note. Although this is a deceleration from April’s 37-percent growth, it compares favorably with last year’s 28-percent jump in May, he said. (See the analyst's track record here.)
The sequential deceleration from April may have been due to tough comps from last year — and the May data continues to indicate a high level of growth, Nispel said.
Akamai's upcoming catalysts include the annual Edge World conference June 10-13, where Akamai will be hosting analysts and investors for the first time, the analyst said, and Akamai is a platinum-level sponsor of Amazon.com, Inc. (NASDAQ: AMZN) AWS' re:Inforce security conference.
Just as Akamai’s enterprise security products are being integrated within the Microsoft Corporation (NASDAQ: MSFT) Azure marketplace, a partnership between AWS and Akamai is possible as well, according to KeyBanc.
Akamai shares were up 1.74 percent at $77.24 at the time of publication Wednesday.
Guggenheim, KeyBanc Remain Akamai Bulls After Q1 Beat
25 Stocks Moving In Wednesday's Pre-Market Session
Photo courtesy of Akamai.
Latest Ratings for AKAM
|Apr 2019||Initiates Coverage On||Buy|
View More Analyst Ratings for AKAM
View the Latest Analyst Ratings
See more from Benzinga
- Alcoa Analyst Says Alumina Oversupply Concerns Outweigh Short-Term Profit Opportunity
- Luxfer Downgraded By KeyBanc On Slowing Elektron Revenues, Capex Concerns
- BTIG Drops Bullish MercadoLibre Stance, Says Payments Stock Has Limited Upside After Rally
© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.