Cybersecurity and cloud service company Akamai Technologies, Inc. (NASDAQ: AKAM) recently revealed that it has partnered with fellow cloud computing company Rackspace Technology, Inc. (NASDAQ: RXT) to provide secure applications and APIs to mid and small businesses.
Following the news, shares of the company remained almost static to close at $119.83 in Wednesday’s extended trading session.
With applications and APIs under increasing threat as digital adoption becomes more and more mainstream, the partnership is expected to arm mid and small businesses with Akamai’s Web Application and API Protector, which offers security solutions to websites, applications and APIs.
Akamai’s Web Application and API Protection will be offered to these businesses in combination with Rackspace’s Rackspace Elastic Engineering for Security program.
The Executive Vice-President of Sales and Services at Akamai, PJ Joseph, said, “Organizations are increasingly adopting cloud architectures that make them vulnerable to cyber-attacks. These vulnerabilities include an increase in DDoS attacks and growing use and subsequent abuse of APIs. We are pleased to partner with Rackspace to create new bundles of Akamai’s market-leading security services to address the application security needs of both enterprises and small to medium businesses.”
Wall Street’s Take
Recently, Evercore ISI analyst Amit Daryanani reiterated a Buy rating on the stock with a price target of $130, which implies upside potential of 8.7% from current levels.
Consensus among analysts is a Moderate Buy based on nine Buys, two Holds and one Sell. AKAM’s average price target of $131.55 implies upside potential of 10% from current levels. Shares have gained 16.7% over the past year.
Akamai’s price performance over the past year has been solid. Further, this partnership to assist mid and small businesses is expected to aid the company’s growth.
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