Zacks Investment Research upgraded shares of Akamai Technologies Inc. (AKAM) from NEUTRAL to OUTPERFORM on July 05, 2013, with a target price of $51.00.
Akamai reported an impressive first quarter, comfortably beating the Zacks Consensus Estimate on both lines. Management provided an optimistic outlook for the second quarter. We believe that strong demand for cloud infrastructure solutions, security, mobile products and online video will drive top-line growth going forward. New customer wins and the company's continuing dominance in the web application business is a significant growth catalyst going forward. Akamai continues to manage its server networks in an efficient way, which is expected to reduce depreciation expense going forward. This will further boost gross margins. Moreover, aggressive share repurchase will boost its profitability in 2013. We upgrade our recommendation from Neutral to Outperform and set a price target of $51.00.
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