UPDATE: Piper Jaffray Raises PT on Limelight Networks to $8 (LLNW)

Piper Jaffray is out with its report today on Limelight Networks LLNW, raising its price target from $7 to $8. In a note to clients, Piper Jaffray writes, "Limelight reported strong Q4 revenue and EPS. Gross margin ticked up sequentially by 2 percentage points to 46%, up from 34% y/y, primarily due to a higher revenue mix of value-added services (VAS was 36% of revs in Q4, up from 34% in Q3; for comparison, Akamai AKAM VAS was 55% of revenue in Q3). Q1 and full FY11 revenue guidance is slightly ahead of Street expectations. We maintain a Neutral rating, but raise our price target from $7 to $8, based on a 3.0x CY12E revenue; this is slightly lower than our previous multiple of 3.5x and remains a discounted multiple vs. AKAM, which we believe is warranted based on lower margin visibility in 1H11." At the time of posting, shares of LLNW were trading pre-market at $8.05, up 24.61% from Monday's close.