FBR Capital Defends Limelight Networks (LLNW): Accumulate Shares on Any Weakness
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Price: $2.46 --0%
Rating Summary:
10 Buy, 3 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
Rating Summary:
10 Buy, 3 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 12 | New: 9
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FBR Capital maintains an 'Outperform' on Limelight Networks, Inc. (NASDAQ: LLNW), PT $9.
FBR analyst says, "Yesterday, the Court of Appeals for the Federal Circuit granted Akamai’s (Nasdaq: AKAM) request for an en banc rehearing of its appeal. While the federal court of appeals vacated a December 2010 district panel’s (three judges) opinion that Limelight did not infringe on Akamai’s ‘703 patent, it did so more for procedural reasons and not because it thought there was a flaw in the panel’s opinion. The appeal will now be reheard by all 10 judges of the district court of appeals. We think the odds are in favor of Limelight because three of the 10 judges on the district court of appeals already ruled in favor of the company in December. Limelight only needs to get a favorable ruling from three of the remaining seven judges to get a simple majority (assuming the original three do not change). We expect it to take about 12 to 18 months for a resolution to the appeals process to be reached. We would be buyers on any weakness."
"We maintain our OP rating as we expect Limelight to benefit from (1) growing traction with its cloud-based services, (2) a more stable pricing environment, and (3) strong traffic growth on its network. We also believe Limelight could be viewed as a strategic asset for a potential acquirer."
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 $6.98 yesterday.
FBR analyst says, "Yesterday, the Court of Appeals for the Federal Circuit granted Akamai’s (Nasdaq: AKAM) request for an en banc rehearing of its appeal. While the federal court of appeals vacated a December 2010 district panel’s (three judges) opinion that Limelight did not infringe on Akamai’s ‘703 patent, it did so more for procedural reasons and not because it thought there was a flaw in the panel’s opinion. The appeal will now be reheard by all 10 judges of the district court of appeals. We think the odds are in favor of Limelight because three of the 10 judges on the district court of appeals already ruled in favor of the company in December. Limelight only needs to get a favorable ruling from three of the remaining seven judges to get a simple majority (assuming the original three do not change). We expect it to take about 12 to 18 months for a resolution to the appeals process to be reached. We would be buyers on any weakness."
"We maintain our OP rating as we expect Limelight to benefit from (1) growing traction with its cloud-based services, (2) a more stable pricing environment, and (3) strong traffic growth on its network. We also believe Limelight could be viewed as a strategic asset for a potential acquirer."
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 $6.98 yesterday.
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