Akamai Technologies May Finally Be Cheap Enough To Attract Acquisition Interest

October 06, 2011

Bloomberg reported that Akamai Technologies (NASDAQ:AKAM) may finally be cheap enough to lure IBM (NYSE:IBM) or Verizon Communications (NYSE:VZ) as the company, which has been the most speculated U.S. takeover target since 2005, approaches its lowest valuation on record.The company was worth as much as $9.9 billion last year. Shares have fallen 57% in the past 12 months, the third largest drop in the Nasdaq 100 Index, giving it a market value of $3.8 billion.Akamai Technologies (NASDAQ:AKAM) has a potential upside of 36.9% based on a current price of $20.56 and an average consensus analyst price target of $28.14.Akamai Technologies is currently below its 50-day moving average (MA) of $21.96 and below its 200-day MA of $34.10.