Akamai Technologies Downgraded to Sector Weight Following GuardiCore Acquisition
<p>Analysts at KeyBanc downgraded <a href='https://financialmodelingprep.com/financial-summary/AKAM'>Akamai Technologies, Inc. (NASDAQ:AKAM) </a>to Sector Weight From Overweight following the company's announced acquisition of GuardiCore. </p>
<p>The analysts believe their thesis that the company would utilize its significant FCF position to return capital to shareholders is unlikely, see margin compression, particularly relative to their prior expectations, and believe the recent merger and acquisition creates pressure on the company's EBITDA margins, and is only modestly accretive to growth.</p>
<p>The brokerage increased its 2022 revenue estimate to 10.5% year-over-year growth vs. 9.7% previously. Its adj. EBITDA decreases to 6.7% year-over-year vs. 12.2% previously, reflecting an EBITDA margin of 43.1% vs. 45.8% previously.</p>

NASDAQ:AKAM