Morningstar - Akamai Technologies Inc. (AKAM) Insourcing Continues to Weigh on Akamai; Shares Remain Overvalued

Report

Morningstar

Michael Hodel

EUR 147.86 For Business Accounts Only

Insourcing Continues to Weigh on Akamai; Shares Remain Overvalued

Akamai continues to struggle with insourcing among its largest customers, causing growth to again decelerate during the second quarter and prompting management to offer tepid revenue expectations for the balance of the year. We expect the firm will fall short of our prior 2016 sales expectations, though we are maintaining our $45 fair value estimate and narrow moat rating. Even with the shares trading lower after the earnings release, we consider the stock modestly overvalued.
Revenue increased ...

26/07/2016 13 EN

Underlying

Akamai Technologies Inc.

Akamai Technologies provides solutions for securing, delivering and optimizing content and business applications over the Internet. The company provides online solutions for the security, delivery and acceleration of websites and applications. The company's solutions include: cloud security solutions; enterprise security solutions; web and mobile performance solutions; media delivery solutions; carrier solutions; and services and support solutions, which provides an array of service and support offerings that are designed to assist its customers with integrating, configuring, optimizing and managing its main offerings.

See profile

US00971T1016 NASDAQ Stock Market United States

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

See profile

Analysts

Michael Hodel

Other Reports on these Companies

Valens Research

Valens Equity Weekly Insights - 2023 11 21

Akamai Technologies (AKAM) has been rapidly growing its high-margin cybersecurity and edge computing businesses. Uniform Accounting highlights the company's profitability potential as it grows these businesses, a trend the market seems to be missing, indicating equity upside is warranted. While Akamai's legacy CDN business is viewed by the market as a saturated utility, the company has been pivoting towards higher margin businesses like cybersecurity and edge computing, giving it the ability to reinvigorate growth and returns. As this business continue growing thanks to tailwinds from AI and ...

November 22, 2023 November 22, 2023 1 EN

Valens Research

Valens Equity Insights and Inflections - 2022 05 03

Akamai Technologies, Inc. (AKAM) has been rapidly growing its high-margin cybersecurity business. Uniform Accounting highlights the company's profitability potential as it grows these businesses, a trend the market seems to be missing, indicating equity upside is warranted. While Akamai's legacy CDN business is viewed by the market as a saturated utility, the company has been pivoting towards higher margin businesses like cybersecurity and Edge Computing, giving it the ability to reinvigorate growth and returns. As the cybersecurity business continues growing towards overtaking the CDN busin...

May 4, 2022 May 4, 2022 1 EN

Valens Research

Valens Equity Insights and Inflections - 2022 01 18

Holley (HLLY) has a dominant and expanding market position in the growing performance automotive aftermarket. Uniform Accounting highlights that the market is pricing in historically low growth and significantly weaker pricing power, signaling the potential for equity upside as the company continues executing. Holley is currently the dominant player within a $4 billion subset of the growing $35 billion performance automotive aftermarket. The company is using its trusted reputation and an intelligent acquisition strategy to become the number one player in an additional $5 billion slice of...

January 19, 2022 January 19, 2022 1 EN

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Contract manufacturer Lonza reported solid half-year results, with over CHF 2.9 billion in total sales year to date, up about 6.4% from last year and boosted by foreign exchange tailwinds. Core EBITDA margin expanded 30 basis points from last year to about 27.8%, helped slightly by new accounting standards. Management indicated that it continues to expect mid- to high-single-digit sales growth in 2019. We are maintaining our fair value estimate of CHF 210 per share and our no-moat rating. The ph...

EUR 100.00

July 25, 2019 July 25, 2019 13 EN

Damien Conover

Damien Conover

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

We don't expect any major changes to our AstraZeneca fair value estimate following second-quarter results that largely fell in line with our expectations and slightly ahead of consensus expectations. Overall, the company is posting leading Big Pharma sales growth with total sales up 18% operationally year over year, led by impressive cancer drug sales growth of 57%. Astra's ability to continue to bring next generation drugs to the market that address unmet medical need (especially in oncology) s...

EUR 100.00

July 25, 2019 July 25, 2019 14 EN

Damien Conover

Damien Conover

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

EUR 100.00

July 25, 2019 July 25, 2019 14 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

Insourcing Continues to Weigh on Akamai; Shares Remain Overvalued

Valens Equity Weekly Insights - 2023 11 21

Valens Equity Insights and Inflections - 2022 05 03

Valens Equity Insights and Inflections - 2022 01 18

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe