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The Analyst Verdict: Akamai Technologies In The Eyes Of 5 Experts

Benzinga·08/13/2025 12:01:30
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Throughout the last three months, 5 analysts have evaluated Akamai Technologies (NASDAQ:AKAM), offering a diverse set of opinions from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 2 1 1 1
Last 30D 0 0 0 0 1
1M Ago 0 2 1 0 0
2M Ago 0 0 0 0 0
3M Ago 0 0 0 1 0

Analysts have set 12-month price targets for Akamai Technologies, revealing an average target of $78.4, a high estimate of $95.00, and a low estimate of $63.00. Experiencing a 22.38% decline, the current average is now lower than the previous average price target of $101.00.

price target chart

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of Akamai Technologies among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Gabriela Borges Goldman Sachs Announces Sell $67.00 -
Patrick Colville Scotiabank Lowers Sector Outperform $95.00 $105.00
Frank Louthan Raymond James Lowers Outperform $84.00 $110.00
James Fish Piper Sandler Lowers Neutral $83.00 $88.00
Jackson Ader Keybanc Announces Underweight $63.00 -

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Akamai Technologies. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Akamai Technologies compared to the broader market.
  • Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Akamai Technologies's stock. This examination reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Akamai Technologies's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Akamai Technologies analyst ratings.

Unveiling the Story Behind Akamai Technologies

Akamai operates a content delivery network, which entails locating servers at the edges of networks so its customers, which store content on Akamai servers, can reach their own customers faster, more securely, and with better quality. Akamai has over 325,000 servers distributed over 4,100 points of presence in more than 1,000 cities worldwide. The firm also offers security and cloud computing for its customers, and those businesses have grown to be bigger than the legacy CDN.

Akamai Technologies: Financial Performance Dissected

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Akamai Technologies's revenue growth over a period of 3M has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 6.52%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 9.93%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 2.29%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 1.01%, the company showcases effective utilization of assets.

Debt Management: Akamai Technologies's debt-to-equity ratio is below the industry average at 1.18, reflecting a lower dependency on debt financing and a more conservative financial approach.

The Significance of Analyst Ratings Explained

Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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