Akamai shares rise on analyst's report

Shares of Akamai Technologies Inc. rose today after a Pacific Crest analyst said Akamai is delivering content for Apple Inc.'s new online movie rental service.

Shares of Cambridge-based Akamai, which provides services and technologies for distribution and storage of digital media, added $1.05, or 4.1 percent, to $26.93 in midday trading on the Nasdaq Stock Market. In the past year, the stock has traded between $25.13 and $59.69.

In a client note, Pacific Crest analyst Chad Bartley said that Akamai had refuted rumors that it lost business from Apple, but worries continued that the company might not provide delivery for future iTunes services.

But an analysis of network traffic data gleaned from renting a movie from Apple's new iTunes movie rental service showed Akamai is in fact delivering content for it, he said.

"This should be a positive for Akamai after the recent weakness in the shares," he said.

Bartley also estimated that work with Apple's rental service may generate incremental revenue of about $6 million and earnings of about 1 cent per share for the company in 2008, and even more in 2009.

Bartley rates Akamai shares "Outperform" with a 12-month price target of $45. (AP)