Wednesday, November 28, 2012

Limelight: Jefferies Upgrades To Buy; Sets $6 Target Price

Jefferies & Co. analyst Katherine Egbert this morning raised her rating on content delivery network provider Limelight Networks (LLNW) to Buy from Hold, asserting that the company’s recent acquisition of EyeWonder, a provider of digital advertising software, “should provide enough high-margin software and services to drive higher revenue growth and first-time profitability” for the company.

She adds that “price stabilization and increasing online rich media traffic…could combine with growing value-added services to produce further upside.”

For 2010, she now sees pro forma EPS of 11 cents a share, up from a previous estimate of a loss of 4 cents. For 2011, she goes to 14 cents, from a loss of 2 cents.

Egbert bumps up her target on the stock to $6, from $4.

LLNW closed Friday at $4.19.

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