As previously reported, RBC Capital analyst Rishi Jaluria downgraded Akamai to Sector Perform from Outperform with a price target of $85, down from $100. The company’s Q4 results were in line with estimates, but the major story of the earnings call was the "clear change in strategy" to go all-in on Linode and Compute as Security growth slows, the analyst tells investors in a research note. The firm adds that the shift alters Akamai’s risk-reward profile, and it would prefer for evidence thta it can pay off before getting involved in the name again.
Published first on TheFly
See today’s best-performing stocks on TipRanks >>
Read More on AKAM: