-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We maintain our Hold recommendation on shares of AKAM, but increase our target price to $159, from $121, on a forward P/E of 22x our 2027 EPS projection of $7.21. We adjust our 2026 EPS forecast to $6.92 from $6.91, but trim our 2027 EPS projection to $7.21 from $7.63. AKAM reported Q1 2026 revenue of $1.074B, up 6% Y/Y (4% constant currency), with Cloud Infrastructure Services delivering exceptional 40% Y/Y growth to $95M, accelerating from 39% in Q4 2025. Security revenue grew 11% Y/Y to $590M, while Delivery declined 7%. AKAM announced a notable $1.8B CIS deal with a leading U.S.-based frontier model provider over seven years, which we view as a significant win amid competition, and we also see the potential for more pipeline conversions ahead. However, the trade off is lower margins and a significant ramp in capex expectations for the full-year, now 40% to 42% of sales. While we like the growth opportunity, we think current valuation is less attractive and look for a better entry point.