Morgan Joseph Starts Limelight Networks, Inc. (LLNW) at Hold; An Up-and-Comer in Content Delivery
Get Alerts LLNW Hot Sheet
Price: $2.46 --0%
Rating Summary:
10 Buy, 3 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
10 Buy, 3 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Morgan Joseph initiates coverage on Limelight Networks, Inc. (NASDAQ: LLNW) with a Hold.
Morgan analyst says, "We believe the shares are fairly valued at current levels despite our view that Limelight is poised for significant growth resulting from increased demand in the CDN space and cloud-based service offerings. With LLNW shares trading at approximately 8x our 2012E EV/EBITDA estimate, using our 2012 adjusted EBITDA forecast of $44mm, we believe the stock is fairly valued relative to the cloud infrastructure group. The group average is 9x, as previously noted in this report, and the 7.6x multiple of Limelight’s closest competitor, Akamai, looks more attractive to us at this point. Nevertheless, we believe opportunities in the CDN and cloud-based services space offer significant growth potential, particularly in Limelight’s niche focus area of on-line advertising. As enterprises increase cloud adoption and Internet traffic increases with data-intensive applications, we look for Limelight to benefit from the rising need for efficient and reliable content delivery."
For more ratings news on Limelight Networks, Inc. click here and for the rating history of Limelight Networks, Inc. click here.
Shares of Limelight Networks, Inc. closed at $4.61 yesterday.
Morgan analyst says, "We believe the shares are fairly valued at current levels despite our view that Limelight is poised for significant growth resulting from increased demand in the CDN space and cloud-based service offerings. With LLNW shares trading at approximately 8x our 2012E EV/EBITDA estimate, using our 2012 adjusted EBITDA forecast of $44mm, we believe the stock is fairly valued relative to the cloud infrastructure group. The group average is 9x, as previously noted in this report, and the 7.6x multiple of Limelight’s closest competitor, Akamai, looks more attractive to us at this point. Nevertheless, we believe opportunities in the CDN and cloud-based services space offer significant growth potential, particularly in Limelight’s niche focus area of on-line advertising. As enterprises increase cloud adoption and Internet traffic increases with data-intensive applications, we look for Limelight to benefit from the rising need for efficient and reliable content delivery."
For more ratings news on Limelight Networks, Inc. click here and for the rating history of Limelight Networks, Inc. click here.
Shares of Limelight Networks, Inc. closed at $4.61 yesterday.
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