Akamai Technologies, Inc. (AKAM)

[eastunder]

FBR Capital Maintains a 'Market Perform' on Akamai (AKAM); Good 1Q, but Business Deceleration Drives Disappointing Guidance

7:07 am ET 04/28/2011 -

FBR Capital maintains a 'Market Perform' on Akamai Technologies (NASDAQ: AKAM), PT lowered from $44 to $40. FBR analysts says, "Last night Akamai reported a good quarter with slight upside to revenue and EPS. While the deceleration of the business was expected, the company s guidance suggests further deceleration in 2Q, which will most likely disappoint investors. We have long believed that the growth rates of 2010 were not sustainable, as they were partly driven by easy comparables from a tough 2009 and from a dramatic acceleration of traffic growth. In 2011, aside from tougher comparables, Akamai is also being adversely affected by a large number of significant deals that were reset at lower prices in 1Q and by a moderation of traffic growth." "For 2011, we trimmed our revenue and pro forma EPS estimates from $1.19 billion and $1.57 to $1.17 billion and $1.55, respectively. For 2012, we lowered our revenue and pro forma EPS estimates from $1.37 billion and $1.76 to $1.32 billion and $1.75, respectively."