Bank of America Securities Keeps Hold Rating on Akamai with $100 Price Target

Bank of America Securities analyst Madeline Brooks has reiterated a Hold rating for Akamai (AKAM) with a price target of $100.00. Brooks has an average return of -12.4% and a 33.33% success rate, covering the Technology sector. Additionally, Needham's Mike Cikos also issued a Hold report for Akamai, while Guggenheim maintained a Buy rating. Akamai's one-year high is $106.80, and its one-year low is $67.51.

In a recent update, Bank of America Securities analyst Madeline Brooks reiterated a Hold rating for Akamai Technologies (NASDAQ: AKAM) with a price target of $100.00 [1]. Brooks, known for her average return of -12.4% and 33.33% success rate in the Technology sector, cited concerns about the company's current investment cycle extending through 2026 before realizing revenue re-acceleration and margin expansion. Despite the positive Q2 2025 results, Brooks remains cautious.

Needham's Mike Cikos also issued a Hold report for Akamai, maintaining a neutral stance. In contrast, Guggenheim maintained a Buy rating, suggesting optimism about the company's long-term prospects. Akamai's stock price has fluctuated significantly over the past year, reaching a one-year high of $106.80 and a one-year low of $67.51.

Akamai's recent financial results have been mixed. While the company reported strong Q2 2025 earnings, exceeding analyst expectations with an earnings per share of $1.73 and revenue of $1.043 billion, the stock has faced varying analyst reactions. TD Cowen raised its price target to $98.00 from $92.00, while Piper Sandler reduced its target to $83.00 from $88.00 and Raymond James lowered its target to $84.00 from $110.00 [2].

Akamai's Q2 2025 revenue rose 7% to $1.043 billion, driven by 11% security growth and 30% CIS expansion, with non-GAAP EPS exceeding guidance by 9%. The Security segment thrived via AI threat detection and strategic contracts, while the CIS segment neared a $300 million annual run rate with compute-heavy workloads. Akamai's non-GAAP operating margin of 30% reflects disciplined cost control despite 21% capex, supported by $1.56 billion in cash reserves and $300 million in share repurchases [2].

Akamai operates in a competitive market, with partnerships like those with Cloudinary and P3M Works differentiating it in cloud security and compute markets. The company's focus on high-margin services and strategic agility positions it as a potential growth stock. However, risks such as macroeconomic headwinds and competition from hyperscalers remain.

In conclusion, analysts' opinions on Akamai are mixed. While some see potential for growth, others remain cautious about the company's investment cycle. Akamai's strong Q2 2025 results highlight its resilience and growth potential, but investors should consider the varying analyst ratings and price targets.

References:
[1] https://www.investing.com/news/analyst-ratings/td-cowen-raises-akamai-technologies-stock-price-target-to-98-on-upbeat-results-93CH-4180902
[2] https://www.ainvest.com/news/akamai-technologies-akam-q2-2025-earnings-analysis-strategic-positioning-cloud-security-compute-markets-2508/