The Real Reasons For Akamai's Gargantuan Move? Buybacks And Insider Buys
B. Riley upgraded Akamai Technologies, Inc. (NASDAQ: AKAM) from Neutral to Buy on Wednesday morning amid an earnings and sales beat. On Tuesday night, the company reported fourth quarter earnings 10 cents above estimates and revenue a little over $10 million above consensus.
Amid a slew of analyst activity -- UBS and Deutsche Bank maintained Buys, while Craig-Hallum upgraded shares to a Buy -- B. Riley's Sameet Sinha hiked his view on the stock.
Sinha upgraded Akamai and raised his price target to $60 from $54, using a 10.0 times AEBITDA multiple, which was previously at 9 times.
Despite a next-quarter guide below expectations, Sinha said the basis of his upgrade was that Akamai's media business risk has been "quantified, expenses have been reined in and valuation is nominal."
Why The Huge Move? Buybacks And Insider Buys
Along with this quantified risk, Sinha said a large buyback and insider purchases are key catalysts for the stock's outsized move.
Shares are up over 23 percent on Wednesday.
Latest Ratings for AKAM
| Date | Firm | Action | From | To |
|---|---|---|---|---|
| Feb 2022 | Citigroup | Maintains | Buy | |
| Feb 2022 | Raymond James | Maintains | Outperform | |
| Jan 2022 | Keybanc | Upgrades | Sector Weight | Overweight |
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