Benzinga - by Lekha Gupta, Benzinga Editor.
Guggenheim analyst Raymond McDonough upgraded Akamai Technologies Inc (NASDAQ: AKAM) to Neutral from Sell.
The analyst sees risk to both Q3 and Q4 FY23 top-line estimates, with potential downside to Compute business, which will likely require the utilization of incremental capacity build-outs, most of which will probably come online in Q4.
On the other hand, the analyst sees a 2%-3% potential upside to current FY24 estimates, even if H2 FY23 results come slightly below expectations.
The analyst is bullish on expected new business growth in the mid-teens in the Security business, the utilization of incremental data center additions to drive Compute results, and the Delivery segment benefiting from H2 FY24 events, including the Summer Olympics/Presidential Election.
McDonough revised revenue and EPS estimates to $4.132 billion (from $4.137 billion) and $6.55 (from $6.56) for FY23.
Also Read: Akamai Technologies Buys Lumen's Select Customer Contracts, Sees FY24 EPS & Revenue Accretion
AKAM will report Q3 FY23 results on November 7, 2023.
Price Action: AKAM shares are trading lower by 0.58% at $102.00 on the last check Thursday.
Latest Ratings for AKAM
| Feb 2022 | Citigroup | Maintains | Buy | |
| Feb 2022 | Raymond James | Maintains | Outperform | |
| Jan 2022 | Keybanc | Upgrades | Sector Weight | Overweight |
View the Latest Analyst Ratings
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