Facts of growth in the value of shares.

The company has a variety of cloud security products (Web Application Protector, Kona Site Defender, Site Shield, Enterprise Threat protector) and other cloud services. Thus, the company’s products are sufficiently diversified within the operating sector. Cloud security services have become in demand during the pandemic due to the transition of almost all employees to remote work. Since the start of the pandemic, the company’s quotes have risen 45%. The company’s financial indicators are quite stable – the last four years have seen an increase in revenue. The company also has a positive net profit (in 2019, the share of net profit in revenue was 14%). For an IT company, this is a pretty good indicator. However, the company has not yet distributed its net profit as dividends, using these funds for the further development of the company. The company has a huge number of competitors on the market. However, the company is not a startup, it was founded more than 20 years ago, but the capitalization of the company is only $ 20B.

Investors are attracted mainly by two things – growth prospects, as the line of business is promising, and stable financial performance, which means that the firm can generate positive bottom line.

Oppenheimer analysts also believe that the company’s shares may still rally – their target price is $ 130.

J.P. Morgan also expects the quotes to rise to $ 122.

Our verdict regarding the company.

Surprisingly, the company is not an overvalued market. The P / E multiple is now around 30, and despite the fact that the company does not pay dividends, but keeps them in business, its financial indicators may soon become even more stable. Despite the fact that once the pandemic is over and #AKAM is likely to lose some of its customers, this will not affect the company’s long-term growth. After all, some technology companies have already begun to transfer their employees to remote work permanently.

This security is definitely worth considering for investment. The current price of $ 110 quite accurately determines the financial capabilities of the company and the prospects for its development.

A review of market analytics and a description of Aravana CM products are available on the Products/Analytics.