Analysts Boost Targets for Akamai Technologies, Inc. (NASDAQ:AKAM)

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Akamai Technologies, Inc. (NASDAQ:AKAM)’s solid show in the third quarter earned it a host of price target upgrades from analysts.

The company’s Q3 earnings report triggered a 14.61% rally in Akamai’s shares, which closed Wednesday at $67.70 on volume of 13.70 million. That was a lot of shares traded, considering average volume on Akamai is just 2.26 million.

The jump yesterday cemented Akamai’s breakout (over the previous two sessions) from a sideways, rectangle pattern range in effect since March 2016.

On September 30, the stock had stealthily moved above a confluence of the 20-day, 50-day and 200-day moving averages. The stock is now in bullish territory.

Akamai Technologies, Inc. (NASDAQ:AKAM) fires on all cylinders in Q3

For the third quarter Akamai reported EPS of $0.68 which beat estimates by $0.07, and revenue of $584 million which beat by $12.13 million and was up 6% year on year.

The cloud security business of the company reported a stellar 46% growth year on year, posting revenue of $95 million, while the mainline performance and security solutions segment clocked revenue of $345 million, up a solid 19%.

Free cash flow was $172 million, bringing the year-to-date free cash flow to $444 million, up 146% over the same period from last year.

“As the cyber-attacks from last week demonstrate, enterprises need solutions capable of defending against massive botnets that are exploiting millions of online devices. This is an area where Akamai’s unique architecture and ongoing investments in global scale and security innovation continue to make a critical difference,” said Dr. Tom Leighton, Chief Executive Officer, in a statement.

Jim Benson, EVP and CFO said on the conference call: “Revenue from our performance and security solutions was particularly strong, coming in at $345 million, growing 19% year over year, and was the driver of our revenue overachievement in the quarter. Performance and security solutions now make up nearly 60% of our total revenue. We are very pleased with the continued revenue diversification into our more highly differentiated higher-margin offerings.”

Akamai Technologies, Inc. (NASDAQ:AKAM) upgrades and revised targets

Analysts at FBR upgraded the stock from Underperform to Market Perform, and revised their target from $42 to $55.

Stifel retained their hold but upped their target from $58 to $65.

RBC and Deutsche Bank reaffirmed their Sector Perform and Buy ratings respectively but raised targets from $59-$67 and $70-$75 respectively.

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