Akamai Technologies' Price Target Raised to $80 as Deutsche Bank Sees Huge Opportunity for Cloud Services Provider

Strategic Insights -

Akamai Technologies, a cloud services provider that enables customers to distribute content across a network of servers, has seen its price target raised to $80 by Deutsche Bank. As a cloud services provider, Akamai has served major companies such as Apple, Facebook, Twitter, and eBay, and Deutsche Bank sees a huge opportunity for the company, with a projected growth in the high teens, above the consensus view of mid-teens. The firm also recommends Akamai as a large cap GARP (Growth at a Reasonable Price) play among television stocks.

Key Takeaways:

  • Deutsche Bank raised Akamai Technologies' price target to $80 from $77.
  • The firm sees a huge opportunity for Akamai, with a projected growth in the high teens, above the consensus view of mid-teens.
  • Akamai has served major companies such as Apple, Facebook, Twitter, and eBay.
  • Deutsche Bank recommends Akamai as a large cap GARP play among television stocks.
  • Akamai's revenue growth has slightly outpaced the industry average of 6.8% since the same quarter one year prior.
  • However, net income has declined, with earnings per share decreasing by 7.5% in the most recent quarter compared to the same quarter a year ago.
  • The firm also exceeded the industry average cash flow growth rate of 19.34%, with net operating cash flow increasing to $264.02 million or 31.86% compared to the same quarter last year.
  • Deutsche Bank sees a huge opportunity for Akamai, with a projected growth in the high teens, above the consensus view of mid-teens.

Statistics:

  • Akamai's revenue growth has slightly outpaced the industry average of 6.8% since the same quarter one year prior, with revenues rising by 13.6% over the same period.
  • Net operating cash flow has increased to $264.02 million or 31.86% compared to the same quarter last year.
  • The firm's cash flow growth rate of 19.34% is higher than the industry average.
  • Akamai's debt-to-equity ratio of 0.20 is very low, but is currently higher than that of the industry average.

Sources:

  • [http://www.thestreet.com/markets/akamai-technologies-reits-housing-stocks-urban-renewal-10813229.html (TheStreet)]
  • [http://secure2.thestreet.com/cap/prm.do?OID=023499&ticker=AKAM (TheStreet Ratings Report)]