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Investing.com - DA Davidson has reiterated its Buy rating and $115.00 price target on Akamai Technologies (NASDAQ:AKAM), currently trading at $72.18, following the company’s second-quarter results. According to InvestingPro data, analysts’ targets range from $63 to $135, suggesting significant potential upside, with the stock currently appearing undervalued based on Fair Value analysis.
The firm noted that Akamai delivered a strong second-quarter beat, primarily driven by upside in its Delivery segment due to better-than-expected traffic growth and pricing. Security performance was slightly ahead of expectations, while Compute came in slightly below projections. The company maintains strong financial health with a current ratio of 2.31 and has demonstrated consistent profitability, as highlighted by InvestingPro’s analysis.
Akamai raised its calendar year 2025 guidance across all segments, though DA Davidson observed that the increase largely reflected the first-quarter revenue beat, inclusion of U.S. TikTok revenue for the remainder of 2025, and foreign exchange impacts.
The company’s Security segment is still expected to grow 10% year-over-year at constant currency this year, and Compute Identity Solutions (CIS) annual recurring revenue (ARR) is projected to increase 40-45% year-over-year at constant currency.
Compute growth, however, is now anticipated to fall slightly below previous expectations of 15% year-over-year at constant currency, which the firm attributed to timing issues with large deals ramping up and slowing Online Certificate Authority (OCA) growth.
In other recent news, Akamai Technologies reported strong financial results for the second quarter of 2025, beating analysts’ expectations. The company achieved an earnings per share of $1.73, surpassing the forecasted $1.55, and reported revenue of $1.043 billion, exceeding the expected $1.02 billion. Following these results, Akamai provided an optimistic outlook for the third quarter of 2025. In response to these developments, TD Cowen raised its price target for Akamai Technologies to $98, maintaining a Hold rating. Meanwhile, Piper Sandler adjusted its price target to $83, citing concerns over free cash flow but kept a Neutral rating. Raymond (NSE:RYMD) James also lowered its price target to $84, despite maintaining an Outperform rating, acknowledging the company’s better-than-expected quarterly performance. These recent developments highlight varying analyst perspectives on Akamai’s future prospects.
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