In a report released yesterday, Michael Elias from TD Cowen maintained a Hold rating on Akamai (AKAM – Research Report), with a price target of $92.00.
Michael Elias has given his Hold rating due to a combination of factors affecting Akamai’s current financial outlook. Despite Akamai’s positive first-quarter results and increased guidance for the second quarter of 2025, there are concerns about the deceleration in growth rates for its Security and Compute segments. The company’s margins are also under pressure due to investments in expanding its data center capabilities to support its Compute offerings.
Additionally, while there is potential for Akamai to exceed its 2025 estimates, the company needs to demonstrate a reacceleration in revenue growth before a more favorable rating can be justified. The Security segment, although showing strong demand, is experiencing a slowdown due to the maturity of its WAF and DDoS solutions. The API security business, while promising, is not yet large enough to significantly impact overall Security growth. Therefore, Elias remains cautious and maintains a Hold rating until further evidence of growth acceleration is observed.
Based on the recent corporate insider activity of 94 insiders, corporate insider sentiment is neutral on the stock.