Guggenheim starts Akamai with a Sell, says cloud build costs underestimated

As previously reported, Guggenheim analyst Raymond McDonough initiated coverage of Akamai with a Sell rating and $75 price target as the firm expands its coverage of the Cybersecurity sector. Cybersecurity, in aggregate, has traded at a discount to broader Software since October 2022, but the firm does not think now is the time to start getting more constructive given the view that 2023 estimates appear at risk as "security has proven not to be immune to macroeconomic pressures." Consensus estimates are likely underestimating future capital intensity for its cloud build and the deceleration in its security segment, the analyst tells investors.