Limelight Networks up, brokerage lifts to 'outperform' after Edgecast deal

Edgio

08/03/2022 15:01

** Shares of content delivery network service provider
 LLNW.O  up 11.2% at $4.75 in early trade 
    ** Northland Capital raises rating on LLNW to "outperform"
after co said on Monday it would acquire rival service Edgecast
in a deal valued at about $300 mln  urn:newsml:reuters.com:*:nL3N2VA3EO
    ** Edgecast is a business unit of Yahoo, which is owned by
funds managed by affiliates of Apollo  APO.N  and telecom firm
Verizon Communications  VZ.N 
    ** Brokerage says LLNW has been adding more security
capabilities, and the deal will accelerate that
    ** Raises PT to $6.50 from $5, implying an upside of ~52% to
last close
    ** "The deal lowers the top customer concentration to 13%
from 29%, helping revenue visibility in our view" - Northland
    ** Avg. rating of 8 analysts is "buy"; median PT is $6 -
Refinitiv data
    ** Stock up ~35% YTD 

    

 (Reporting by Tiyashi Datta in Bengaluru)
 ((tiyashi.datta@thomsonreuters.com))