Limelight Networks (LLNW) has created a $563.2 million empire on the back of its fast and secure edge cloud. LLNW’s edge cloud cuts usual pesky delays when using traditional cloud computing spaces for low-latency Internet of Things (IoT) and real time applications. That’s one way to become the leading provider of cloud edge services.
How has 2018 treated LLNW stock? Shares have seen a nearly 11% pop just this year. Limelight also just won this year’s IABM BaM award in the Publish category at the IBC Conference for its breakthrough Realtime Streaming service.
What does Wall Street make of the market opportunity for this tech stock? Here, we see that LLNW is a top stock recommended by best-performing analysts, as per TipRanks Analysts’ Top Stocks investor tool.
Let’s dive in to see why Limelight has top analysts taking note:
Not Easy to Copy This Kind of Competitive Edge
Recently, FBR analyst Sameet Sinha (Track Record & Ratings) hosted a non-deal roadshow with Limelight CFO Sajid Malhotra. The analyst emerged from the event encouraged on LLNW’s prospects.
Notably, the analyst boasts a solid track record when it comes to betting profitably on Limelight. Sinha makes 39.2% in average profits when recommending the stock. After the roadshow, Sinha maintains a Buy on Limelight and forecasts shares to hit $6.
“We came away upbeat on the upcoming ramp of edge compute (EC) and ongoing trends in gaming/over-the-top (OTT) and the potential for the just announced Realtime Streaming (RTS) product. We believe the RTS product, which drops latency down to near physical limits, highlights a very difficult to replicate competitive advantage of LLNW’s backbone network…” contends Sinha.
Limelight’s Newest Bull Says…
Craig-Hallum analyst Jeff Van Rhee (Track Record & Ratings) initiated new coverage on Limelight- and the tech company’s bullish camp just got bigger. In fact, after Van Rhee issued a confident research note on Limelight, investors went parading- and shares jumped over 10%.
At first glance, Rhee rates LLNW a Buy with a $6 price target. In other words, the analyst believes Limelight has room to soar another roughly 11%.
Rhee’s bullish case: with share weakness from May to August, Limelight stock simply was “disconnected from fundamentals.” Moving forward, Rhee projects over the top 50% to 100% returns.
Prediction: More Growth Around the Corner (for Years to Come)
Top analyst Timothy Horan at Oppenheimer (Track Record & Ratings) has a Street-high target set for Limelight. The analyst believes Limelight shares are poised to reach $6.50, a substantial 30% in upside potential.
Notably, the analyst is ranked #8 out of over 4,800 analysts we cover on TipRanks. Horan rates Limelight an Outperform fresh on the heels of hosting Oppenheimer’s Technology, Internet & Communications Conference.
“The focus of our discussion with Sajid Malhotra, CFO of Limelight Networks was on the company’s unique, global network. LLNW has focused on improving customer satisfaction, operational metrics, employee engagement, and financial performance. LLNW is benefiting from strong secular trends in data and content (OTT Video and Gaming), progressing toward long-term financial targets,” highlights Horan.
Limelight has prioritized its top 20 customers, which the analyst notes take a 50% slice of revenue. Now, video delivery comprises of 50% of Limelight’s business- “and is the fastest growing segment.”
“LLNW believes we are in a multi-year trend, and that video, gaming and software downloads will continue to grow and drive the business,” concludes the top analyst.
Bottom Line: Consensus Goes to the Bulls
Ultimately, Wall Street’s positive sentiment circling Limelight shines through. The ‘Strong Buy’ stock boasts a unanimous consensus: 4 buy ratings in three months. Consensus expectations round out to a confident $6.17 average price target, marking 24% upside ahead.
See LLNW Price Target and Analyst Rating Details
