Citigroup's recent analyst actions on three major stocks present a mixed picture for investors, with the investment bank taking divergent approaches to cybersecurity firm Palo Alto Networks, content delivery network Akamai Technologies, and building materials company Martin Marietta Materials over the past several months.
The moves reflect varying outlooks across sectors as analysts navigate an uncertain economic environment heading into the second half of 2025.
Citigroup has maintained its bullish stance on Palo Alto Networks throughout 2025, with the most recent price target adjustment coming in February when the firm raised its target to $220 from $205 while keeping a Buy rating1. The increase followed the company's strong performance in key financial metrics, with analysts noting impressive growth in remaining performance obligations and annual recurring revenue that exceeded forecasts.
"The market is showing a continuous appetite and patience for Palo Alto Networks' execution at scale," Citi analysts observed, citing the company's platformization strategy and investments in artificial intelligence technology1. The cybersecurity company's shares have benefited from strong demand for consolidated security solutions, with the firm reporting over 90 net new large platformization deals in its most recent quarter2.
In contrast, Citigroup cut its price target on Akamai Technologies to $95 from $102 in February while maintaining a Neutral rating1. Analyst Fatima Boolani cited the company's disappointing guidance for 2025, which failed to meet consensus expectations and included projected compound annual growth rates of approximately 10% for its Security and Compute divisions.
The content delivery network provider faces multiple challenges, including regulatory issues surrounding TikTok, a saturated security portfolio, and the need to navigate macroeconomic headwinds1. Despite beating fourth-quarter earnings expectations with $1.66 per share, the company's forward guidance has left investors cautious.
Martin Marietta Materials saw its Citi price target slashed to $600 from $701 in January, though the firm maintained its Buy rating1. The adjustment came as part of Citi's broader 2025 outlook for the homebuilding and building products sector, where earnings estimates fell 3% on average.
However, other firms have taken a more optimistic view. Jefferies raised its Martin Marietta price target to $640 from $610 on Tuesday, citing infrastructure growth despite weather-related challenges2. The firm noted that Infrastructure Investment and Jobs Act funding is finally translating to volume growth, with highway contract awards up year-to-date and bridge awards increasing more than 20%.
"Infrastructure as we noted is going to be good for the rest of this year," Martin Marietta CEO Ward Nye said during the company's recent earnings call3.
