Limelight Networks Stock Gains On Raymond James' Bullish View

Raymond James analyst Frank Louthan upgraded Limelight Networks Inc LLNW from Market Perform to Strong Buy with a price target of $5. The price target implies a 40% upside.
"We believe the Limelight team has embarked on a solid transition, applying a combination of new sales, new products, and improved operational discipline to the legacy CDN business. Looking out 12 months, we believe this combination will drive higher sales, and thus, a stronger valuation."
The combination of new CEO Bob Lyons, Eric Armstrong's role to build and run a sales organization, Layer0 acquisition, CTO Ajay Kapur will likely set the stage for execution next year that will get investors' attention.
"We believe the team has embarked on a solid transition, applying a combination of new sales, new products, and improved operational discipline to the legacy CDN business," the analyst noted.
"Additionally, the company has changed the quota methodology for CDN-focused account management teams, which we believe is giving some steadiness to the sales maintenance programs as the newly hired reps ramp productivity."
Price Action: LLNW shares traded higher by 10% at $3.57 on the last check Monday.