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