Goldman adds Akamai (AKAM) to its “Americas Sell” list, citing “ramping competition,” macro headwinds, and the renewed threat of P2P disruption. GS also trims estimates: CY08 from $1.76 to $1.69 and CY09 from $2.06 to $2.01. Target cut from $35 to $33:
Beyond valuation, we are also concerned about intensifying competition as private entrants proliferate and selected large network operators begin to eye the space. While portions of Akamai’s customer base are likely relatively immune from competitive pressures, we believe that the majority of Akamai’s 2,700 customers will be able to put increasing pressure on the company as contracts come up for renewal this year. Catalysts that could be negative for the shares include entry by additional large network providers, acquisitions of smaller vendors by the same, macro headwinds, and a potential emergence of peer-to-peer offerings.
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