LLNW - Limelight Networks gains 4% as Cowen boosts to Outperform

Limelight Networks (NASDAQ:LLNW) is 3.8% higher following an upgrade to Outperform at Cowen, which is looking to some improving health in the content delivery network business. Limelight is seeing some record current-quarter traffic after a seasonally strong fourth quarter - not just an indicator of "improving CDN health" but also a "remediation of prior performance issues, while creating potential upside from regaining lost traffic share." Meanwhile, a $300 million deal to acquire Yahoo's Edgecast is also on analyst Michael Elias' mind. The all-stock deal also included some $30 million investment from Yahoo, which will retain a minority share. That deal "positions LLNW for accelerating growth/profitability," Elias writes. Risk/reward has turned attractive, Cowen says, and it's raised its price target to $6 from a previous $4. That new target implies 25% further upside.

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Limelight Networks gains 4% as Cowen boosts to Outperform