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Investing.com - Oppenheimer initiated coverage on Akamai Technologies (NASDAQ:AKAM) with an Outperform rating and a $100.00 price target on Monday. This target aligns with broader analyst sentiment, as InvestingPro data shows the stock is currently trading at $87.17, with analysts setting targets ranging from $66 to $134. InvestingPro analysis suggests Akamai is currently undervalued based on its Fair Value assessment.
The research firm cited significant growth opportunities for Akamai in its Security and Compute Infrastructure portfolio, which could potentially accelerate top-line growth to high single-digits. This would mark an improvement from the company’s current revenue growth of 4.21% over the last twelve months, according to InvestingPro data.
Oppenheimer expressed caution regarding the investment thesis that industry consolidation will improve Content Delivery Network (CDN) pricing, but remained optimistic about other business segments.
The firm believes Akamai’s ongoing transformation positions it to capitalize on emerging technology trends, specifically highlighting AI inferencing within cloud computing and API security within cybersecurity.
These newer technology areas could enhance Akamai’s growth profile as the company continues to evolve its business model, according to Oppenheimer’s analysis.
In other recent news, Akamai Technologies reported impressive third-quarter earnings for 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.86, beating the forecasted $1.64. Additionally, Akamai’s revenue reached $1.06 billion, exceeding the anticipated $1.04 billion. These results highlight the company’s strong financial performance and have contributed to positive investor sentiment. In another development, DA Davidson reiterated its Buy rating on Akamai Technologies, setting a price target of $115. The firm emphasized the strong momentum in Akamai’s Compute business, which has been a focal point in discussions with management. This continued confidence from analysts underscores the potential growth in this segment. These recent developments reflect Akamai’s robust position in the market.
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