Oppenheimer analyst Timothy Horan maintained a Buy rating on Limelight Networks (LLNW) today and set a price target of $4. The company’s shares closed yesterday at $3.
Horan noted:
“Revenue was in line with guidance, but down 9% on price competition and the loss of two top ten customers, which drove EBITDA down 47%, but a 15% beat vs. our ests. The customer losses were low-quality/margin, but the loss hurt near-term financials. Positively, this revenue is being replaced by new customers, new locations and new services that are materializing. The Ericsson contract will more than double their 80 nodes and capacity. Management reiterated long-term goals of 15% annual revenue growth and gross margins in excess of 55%. They were very optimistic but with a slight delay into 2H19. The company has four major initiatives to grow revenues which will more than double its market opportunity: edge services, Ericsson, realtime TV and Tencent.”
According to TipRanks.com, Horan is a top 100 analyst with an average return of 14.6% and a 68.2% success rate. Horan covers the Technology sector, focusing on stocks such as Interxion Holding NV, Boingo Wireless Inc, and Zayo Group Holdings.
Limelight Networks has an analyst consensus of Moderate Buy, with a price target consensus of $4.
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Based on Limelight Networks’ latest earnings release for the quarter ending September 30, the company reported a quarterly GAAP net loss of $272K. In comparison, last year the company had a GAAP net loss of $912K.
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Limelight Networks, Inc. is engages in the provision of digital content delivery solutions. It offers cloud security, content delivery, video content management, website and web application acceleration, website and content security, and cloud storage services. It serves to the software, device manufactures, media, broad casters and gaming industries.
