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Limelight's Analyst Day Concerns From Goldman Sachs


Limelight Networks, Inc. (NASDAQ: LLNW) hosted an Analyst Day in New York, which Goldman Sachs reports several key takeaways from:

1. Value adding strategy is aggressive but imperfect, and seen as the right approach for Limelight, but can the company effectively market, sell and continue developing wider ranges of offerings?

2. Stack build out offers opportunities for growth while risking alienation of broader ecosystems. Since acquiring Delve and EyeWonder, revenue yields have been a concern as well as traffic to Limelight, which is now a competitor.

3. New products are more evolutionary than revolutionary, according to Goldman. Commerce Accelerator and Portal Accelerator are evolutions of LimelightSITE, and significant changes are not expected concerning competitive positioning.

4. Limelight is looking to its value-added services to grow long term revenue and gross margins up, and management has raised its model for long term revenues to $400M by 2014.

Goldman Sachs remains Neutral and maintains its $4.50 price target.

Limelight Networks, Inc. closed yesterday at $4.45.

Posted-In: Goldman Sachs Limelight NetworksAnalyst Color Long Ideas News Guidance Analyst Ratings


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