Morgan Stanley double upgrades this cybersecurity stock
CNBC••business
Key Points:
- Morgan Stanley upgraded Akamai Technologies from underweight to overweight, raising the price target from $83 to $115, indicating a potential 31% upside.
- Analyst Sanjit Singh highlighted that Akamai's shares, trading at about 11 times 2027 earnings per share, appear undervalued given the company's growth prospects.
- Akamai is expected to reach an inflection point in its business model, with improved top-line and faster EPS growth driven by stabilization in content delivery, strong security growth, and accelerating compute business expansion.
- Growth catalysts include contributions from the public cloud unit Linode and the new Akamai Inference Cloud, which could boost the compute segment and overall stock valuation.
- Despite a 1%
