Benzinga | Jan 21, 2022 10:04AM EST

Lake Street Bumps Up Limelight Networks Price Target By 11% Post Q4 Results

* Lake Street analyst Eric Martinuzzi raised the price target on Limelight Networks Inc (NASDAQ:LLNW) to $5 from $4.50 and reiterated a Buy rating on the shares. The price target implies an upside of 34%.

* The re-rating follows Limelight's Q4 results and 2022 guidance that was "slightly" ahead of expectations.

* Martinuzzi believes a return to growth and more consistent execution will support a higher valuation.

* Limelight reported fourth-quarter FY21 revenue growth of 14% year-on-year to $62.9 million, beating the consensus of $61.6 million.

* The gross margin expanded 670 bps to 35.4%.

* Non-GAAP EPS of $0.02 beat the consensus of $0.01.

* Limelight sees FY22 revenue of $240 million - $250 million versus the consensus of $241.2 million.

* Limelight sees FY22 non-GAAP EPS loss of $(0.06) - $(0.01) against the consensus loss of $(0.04).

* Price Action: LLNW shares traded higher by 9.25% at $4.08 on the last check Friday.