Shares of Akamai Technologies popped 4% in premarket trading after Morgan Stanley upgraded the stock to Overweight from Underweight. The move reflects growing confidence in the company's ability to break out of years of sluggish growth. Akamai’s revenue has barely budged since the pandemic, held back by declines in its legacy content delivery network business.

That segment, which makes up about 30% of revenue, has suffered from years of double-digit contractions. But recent consolidation among media firms and a revival in live sports viewership are helping stabilize demand. Morgan Stanley forecasts stronger performance ahead.

It sees content delivery stabilizing, security services growing steadily in the mid-to-high single digits, and its compute segment accelerating into the high teens. Much of that boost is expected from Akamai’s cloud infrastructure and its newer Inference Cloud offerings launching in 2026. With the stock trading at just 11 times estimated 2027 earnings, Morgan Stanley raised its price target to $115, citing potential for a valuation rerating.

The firm now expects a 7% annual revenue climb through 2027.