Goldman Sachs Maintains Limelight Networks (LLNW) Neutral Rating

Goldman Sachs analysts Derek R. Bingham and Geo John reduced their forecast for Limelight Networks, Inc. (Nasdaq: LLNW) 2010 and 2011 earnings, while maintaining the stock's Neutral rating and $4 price target.

The analysts said that, "Slowing revenues from Microsoft weighed down on the top line, with revenue growing 3% sequentially in the quarter, lower than the normal sequential growth rates of 6-8%. Excluding Microsoft, we estimate revenue to have grown 8% sequentially, suggesting healthy seasonal trends in the core. Management commented that there has not been any significant improvement in the pricing environment in 4Q. We believe that introduction of more value added services could alleviate some of this pricing pressure. The acquisition of EyeWonder, traction with Limelight XD, and the launch of LimelightSite 2.0 in 1Q should help in this regard."

Shares of the stock closed on Tuesday at $3.98 and have a 52 week trading range of $2.31 to $5.78.