Citi: Akamai Stock Expensive, Downgrades AKAM

Content delivery network Akamai Technologies (AKAM) is still a “core Internet stock,” but it’s not cheap enough to buy, says Citi analyst Mike Mahaney, who downgraded the stock to “hold” this morning.

Shares closed Friday at $40.33, within 4% of Citi’s $42 price target. Mahaney says Akamai’s profit growth can support its current valuation — “but not one materially higher.” He says buy AKAM at $35 or below.

Shares dropped 1.4% this morning to $39.77.

See Also:
AT&T’s CDN: Alive! Big Push Coming In Q3
Is AT&T’s Akamai-Killing Content Delivery Business Vaporware?
Akamai’s Q1 In Line With Expectations; Raises Earnings Guidance

Disclosure: Akamai competitor Panther Express is one of SAI’s sister companies.

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