Akamai: Lift from Online Video Growth

Pacific Growth’s Brent Bracelin yesterday raised his estimates on Akamai (AKAM), asserting that the growth in online video is driving better-than-expected financial results.

He boosted his 2007 revenue forecast to $625 million from $617 million; he now sees EPS of $1.30 a share, up from $1.27.

“Our confidence in online video as an upside driver for Akamai is growing, based on robust growth in ad-sponsored and subscription services,” Bracelin wrote in a research note. He noted that online ad sales for CBS Sportsline’s online “March Madness On Demand” broadcast of NCAA basketball tournament games has doubled over the last year; Akamai will deliver most of the streams for that event, which involves free webcasts of 56 tournament games. (Go, Quakers!) In 2006, overall online video streams increased 38.8%, he notes.

Bracelin thinks the company can reach $1 billion in revenue in 2009.

Akamai yesterday was up $1.54 at $49.64.

AKAM 1-yr chart