Those include Japan's Mitsubishi Heavy Industries, which is expected to lead the design with Britain's BAE Systems PLC. "GCAP is not going to be a love affair, it's going to be a marriage," Wallace said during a speech on Wednesday at the DSEI Japan defence show near Tokyo, which featured a display of the proposed fighter.ĭetails of which companies will build what components are being hammered out in regular talks between more junior government officials and contractors in Britain, Japan and Italy, the sources said. The defence ministers from the three countries, Japan's Yasukazu Hamada, Britain's Ben Wallace and Italy's Guido Crosetto will gather in Tokyo on Thursday, for their first face to face meeting since the fighter deal was agreed in December.Īlthough the upcoming meeting is not expected to produce any major fresh agreement, it may serve to boost political backing for collaboration. Japan's defence ministry said that discussions were ongoing and declined to comment on the cost sharing ratios. That rough investment breakdown is among the first details to emerge from talks on a high-profile venture that will be a test of whether Japan and Europe can collaborate on major military projects. Both sources, who asked to remain anonymous because they are not authorized to talk to the media, added that most of the programmes details were yet to be decided. "The cost of the project will likely be around 40% each for Japan and Britain," one of the people with knowledge of discussions told Reuters. Known as the Global Combat Air Programme (GCAP), the project is expected to cost tens of billions of dollars before the new jet fighter enters service around the middle of the next decade. Reutersīritain and Japan are set to dominate a three-nation project with Italy to build an advanced jet fighter, with Rome set to pay around only a fifth of the overall development cost, two sources said. See our analysis on Akamai Valuation : Is AKAM Stock Expensive Or Cheap? for more details on what’s driving the company’s valuation and how it compares with peers.A concept model of the Global Combat Air Programme (GCAP)'s fighter jet is displayed at the DSEI Japan defense show at Makuhari Messe in Chiba, east of Tokyo, Japan March 15, 2023. We value Akamai stock at about $97, which is about 32% ahead of the current market price. Akamai could also bank on the key customers of its CDN solutions such as media companies as well as e-commerce companies to sell its computing services. The company is also focusing on more distributed sites in locations that are currently underserved by traditional clouds. The company has integrated the 11 data centers it acquired via the Linode deal into its edge locations and plans to build 14 more data centers. For example, Akamai has a network of 350,000 edge servers, across 4,100 locations, which are located away from metropolitan centers, giving the company considerable geographic scale. The company has some advantages in the space. Akamai could see a meaningful upside if it executes well in the compute market - which is sizeable and lucrative. The company is projecting Non-GAAP earnings of between $5.40 to $5.60 per share, translating into a forward earnings multiple of 12x. So does the recent sell-off present an opportunity to buy Akamai stock? The stock remains down by about 40% from the highs seen in 2022. The company is also planning to boost capital expenditures meaningfully to build out its cloud data centers, projecting that it could spend roughly 21% of revenues as Capex for 2023, up from about 13% in 2022. This puts the company in direct competition with deep-pocketed hyper scalers such as Amazon AMZN AWS, Microsoft Azure, and Google. Last month, the company unveiled the Akamai Connected Cloud. However, Akamai is now increasing its exposure to the compute space, following its acquisition of Infrastructure as a Service (IaaS) provider Linode in February 2022 for roughly $900 million. The company’s security business has been a big driver of its growth in recent years with sales expanding by 22% and 16% respectively in 20. Moreover, investors have been concerned about a pivot of sorts to Akamai’s strategy. However, the company’s guidance for 2023 was lighter than anticipated. Adjusted earnings also stood at $1.37 per share, ahead of guidance and consensus estimates. Now Akamai actually posted a better-than-expected set of Q4 2022 results, with revenue rising by about 2% year-over-year to $928 million, ahead of its upper end of guidance of $915 million.
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