Akamai Technologies' (AKAM) story has shifted from a legacy delivery network to a "credible" artificial intelligence infrastructure platform, BofA Securities analysts said in a Wednesday note.
Analysts said the company's Cloud Infrastructure Services is inflecting, growing 40% from a year earlier, with momentum supported by AI workloads and edge inference use cases.
BofA said the company's new $1.8 billion deal will add $20 million to $25 million per quarter from Q4, creating more recurring, capacity-based revenue.
BofA said that Akamai "is able to leverage its existing network and Enterprise customer base to expand into new markets and product offerings."
Analysts upgraded the stock's rating to buy from neutral and raised its price target to $175 from $130.
Price: $160.18, Change: $+10.62, Percent Change: +7.10%