Piper Sandler Reiterates Overweight Rating on Akamai Technologies (AKAM)

Piper Sandler analyst James Fish reiterated an Overweight rating and $112.00 price target on Akamai Technologies (NASDAQ: AKAM).

The analyst commented, "After the market close, Akamai announced the US Bankruptcy Court approved its $125M bid to acquire contract assets from Edgio, with the deal expected to close in early December. The bid implies ~1.3x revenue given the expected ~$10M contribution in 4Q24 and ~ $90M contribution in FY25, and is expected to add $0.15-$0.20 to EPS that brackets our ~$0.16 estimate from last week. We view the consolidation of the media-CDN market as a positive for Akamai (& Fastly), particularly as our last CDN Times did not see a tailwind from Edgio to Akamai but rather to competitors, but this does prolong the likely mix shift to faster-growth and higher-value areas in Security & Compute. We intend to review our estimates once the deal has been officially closed but continue to see value in shares at these levels, which is only helped by the EPS / FCF accretion from this deal."

For an analyst ratings summary and ratings history on Akamai Technologies click here. For more ratings news on Akamai Technologies click here.

Shares of Akamai Technologies closed at $93.10 yesterday.

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