Akamai downgraded to Reduce from Hold at HSBC

HSBC downgraded Akamai Technologies to Reduce from Hold with a price target of $96, down from $109, post the Q4 report. The analyst expects the company to miss 2024 guidance amid signs of further weakness in its core content delivery business. The firm cites lower earnings forecasts and a revised valuation multiple for the downgrade. As Akamai leverages its core content business to cross sell security and compute services, HSBC is concerned about the persistent weakness in the content business.