S&P Capital IQ Reiterates its BUY Rating on Akamai Technologies

October 28 00:00 2011

New York, October 28 (RainbowNewsLine.com) – Analyst Scott Kessler of S&P Capital IQ reiterates his BUY rating on the shares of Akamai Technologies (MASDAQ: AKAM), while raising his estimates for the company. The 12-month target price is set to $35.

Analyst Scott Kessler, in a research note published yesterday mentions that the company has reported its Q3 EPS short of the estimate and ahead of the consensus. According to the analyst, revenues raised 11%, reflecting the growth in enterprise and commerce sectors. Gross margins have showed improvement and expected improve further during Q4, but the litigation costs are affecting the operating margin performance, the analyst says. The EPS estimates for 2012 and 2013 it have been raised from $1.20 to $1.25 and from $1.45 to $1.50, respectively.