Analysts Offer Insights on Technology Companies: Paycom (NYSE: PAYC) and Akamai (NASDAQ: AKAM)

By Jason Carr

There’s a lot to be optimistic about in the Technology sector as 2 analysts just weighed in on Paycom (NYSE:PAYC) and Akamai (NASDAQ:AKAM) with bullish sentiments.

Paycom (PAYC)

KeyBanc analyst Brent Bracelin maintained a Buy rating on Paycom yesterday and set a price target of $133. The company’s shares closed yesterday at $106.25.

Bracelin observed:

“We remain Overweight PAYC, as a unique cloud asset modernizing the payroll market, which gives the Company the opportunity to double revenue to $1B+ within four years while maintaining a best-in-class EBITDA margin of 40%+.”

According to TipRanks.com, Bracelin is a top 100 analyst with an average return of 20.1% and a 73.5% success rate. Bracelin covers the Technology sector, focusing on stocks such as Tyler Technologies, Salesforce.com, and Everbridge Inc.

Currently, the analyst consensus on Paycom is a Moderate Buy with an average price target of $119.88, implying a 12.8% upside from current levels. In a report released yesterday, Oppenheimer also reiterated a Buy rating on the stock with a $127 price target.

.

See today’s analyst top recommended stocks >>

Akamai (AKAM)

In a report released yesterday, Timothy Horan from Oppenheimer maintained a Buy rating on Akamai, with a price target of $90. The company’s shares closed yesterday at $75.26.

Horan noted:

“Security is the strongest segment, up 33% Y/Y, but helped by an acquisition. Over the last 18 months, AKAM has slashed CDN prices to maintain share, traffic has accelerated and better revenue growth should follow. This is helped by OTT video and gaming (World Cup and Fortnite), both of which are in the early days of adoption. There is a lot of operating leverage in the model, AKAM saw strong margin improvement (adj. EBITDA up 110 bps Q/Q). Robust FCF growth, 35% Y/Y in ’18E, should give management the flexibility to continue share buybacks or pursue M&A to augment its security business. Management is implying strong margin improvement in 2H18, raising non-GAAP EPS by 220 bps, on maintained revenue guidance.”

According to TipRanks.com, Horan is a top 25 analyst with an average return of 16.7% and a 76.0% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding NV, Boingo Wireless Inc, and Zayo Group Holdings.

Currently, the analyst consensus on Akamai is a Strong Buy with an average price target of $89.83, representing a 19.4% upside. In a report issued on July 20, Piper Jaffray also reiterated a Buy rating on the stock with a $89 price target.

.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.