UPDATE: DA Davidson Cuts PT to $5 on Limelight Networks; Slow Sales Progress
DA Davidson lowers its price target from $7 to $5 on Buy-rated Limelight Networks (NASDAQ: LLNW) as it cuts estimates on the company's slow sales progress.
DA Davidson comments, "LLNW's CDN business accounted for 69% of revenues and fell 3% on a YoY basis due to lower prices. Netflix represented 11% of total revenues. The company is more disciplined in its CDN pricing, but is losing share to both LVLT and AKAM. LLNW traffic growth was up about 30%-35%, but industry pricing was down ~30% YoY."
LLNW closed at $2.65 on Thursday.
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