12 Most Undervalued Cybersecurity Stocks to Buy According to Hedge Funds

5) Akamai Technologies, Inc. (NASDAQ:AKAM)

Forward P/E as of November 20: ~13.4x

Number of Hedge Fund Holders: 30

Akamai Technologies, Inc. (NASDAQ:AKAM) is a cybersecurity and cloud computing company, which powers and protects business online.

Wall Street analysts are optimistic about Akamai Technologies, Inc. (NASDAQ:AKAM)’s acquisition of application programming interface (API) security company, Noname Security. This demonstrates its strategic focus on expanding its security and compute offerings. This acquisition aligns with Akamai Technologies, Inc. (NASDAQ:AKAM)’s goal of strengthening its security portfolio and capitalizing on the growing demand for API protection.

Noname should accelerate Akamai Technologies, Inc. (NASDAQ:AKAM)’s ability to address growing customer demand and market requirements as the use of APIs continues to expand. Furthermore, it will be able to extend protection throughout API traffic locations, irrespective of business, integration, or deployment requirements that the customers might have. Akamai Technologies, Inc. (NASDAQ:AKAM) will be able to gain greater scale with Noname’s additional sales and marketing resources, and well-established channel and alliance relationships.

Akamai Technologies, Inc. (NASDAQ:AKAM)’s previously announced acquisition of Guardicore enhanced Akamai’s Zero Trust security capabilities. Therefore, this acquisition positioned Akamai Technologies, Inc. (NASDAQ:AKAM) to address the evolving needs of enterprise customers amidst an increasingly distributed computing environment. Despite the near-term challenges, the company’s management remains optimistic about its long-term prospects, primarily in the Security and Compute segments. With the cybersecurity market expanding rapidly, Akamai Technologies, Inc. (NASDAQ:AKAM)’s established reputation and comprehensive security portfolio place it well to tap a significant share.

Tigress Financial reiterated a “Strong buy” rating, issuing a $140.00 target price on 29^th August. Diamond Hill Capital, an investment management company, released its fourth-quarter 2023 investor letter. Here is what the fund said:

“Akamai Technologies, Inc. (NASDAQ:AKAM) is a legacy content delivery network (CDN) solutions provider which management has recently pivoted to enterprise and network security as well as distributed cloud computing. However, these markets are intensely competitive, and Akamai has yet to prove it can differentiate itself from cloud hyperscalers and best-of-breed security companies.”