William Blair analyst Jonathan Ho has maintained their bullish stance on AKAM stock, giving a Buy rating yesterday.
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Jonathan Ho’s rating is based on Akamai’s solid quarterly performance and promising future growth prospects. Despite challenges in the delivery segment, Akamai showed revenue growth and earnings that surpassed expectations. The security and compute sectors are performing well, making up a significant portion of the company’s revenue and growing at a noteworthy pace.
Moreover, the company’s strategic moves in cloud infrastructure, evidenced by securing a $100 million multiyear contract, highlight its potential in that space. Akamai’s management envisions a path to double-digit growth by 2030, supported by strong growth projections in security and compute. Although the guidance for 2025 is below consensus, the company’s focus on high-growth areas suggests it is well-positioned to capitalize on favorable market trends.
According to TipRanks, Ho is a 4-star analyst with an average return of 18.7% and a 59.21% success rate. Ho covers the Technology sector, focusing on stocks such as Cellebrite DI, Akamai, and Palo Alto Networks.
In another report released yesterday, Oppenheimer also upgraded the stock to a Buy with a $120.00 price target.