Limelight Networks (NASDAQ:LLNW) may spend most of its days flying under the radar, but LLNW stock is seriously soaring on Friday.
Much of the rally in LLNW stock is thanks to a bullish analyst note from Gregory Miller at Truist Financial. He initiated coverage on Limelight Networks with a “buy” rating and a $9 price target. Importantly for investors, that price target implies more than 40% upside.
But what exactly is Limelight Networks? The Arizona-based company is a content delivery network specialist, which means it works to quickly deliver internet content to consumers. At the heart of the network is a group of servers that help transfer the assets behind images, videos, HTML and other files. Investors should know that this is exactly why Miller is so bullish on the company.
Miller wrote Friday that amid the novel coronavirus pandemic, Limelight Networks is in the right niche. Consumers are turning to media-streaming services from the likes of Netflix (NASDAQ:NFLX) and Disney (NYSE:DIS) in record numbers. Working behind the scenes, Limelight Networks makes this streaming possible. More specifically, the analyst said that Limelight looks hot as it gains market share, improves its financials and offers better solutions than rival Akamai Technologies (NASDAQ:AKAM).
What is there not to like?
LLNW Stock Soars on Coronavirus Catalysts
Investors were eager to bid up LLNW stock on the Truist note, sending shares up almost 8% Friday. However, the excitement does make a lot of sense. We have seen Wall Street continuously reward companies behind music streaming, movie and TV streaming, and even video games. Why not celebrate success from a company like Limelight Networks that works behind the scenes?
There is another, even more specific catalyst behind the rally in Limelight Networks. According to a company press release, it has been using its CDN services to help providers of educational technology. This is particularly important at the start of the back-to-school season as many universities and school systems embrace virtual learning.
In the release, Limelight Networks says it has nabbed several educational tech customers across the world. Through these deals, the company facilitates video-based learning such as through audiobooks, French-language educational videos and a wide variety of other e-learning solutions. As one customer shared, Limelight Networks has helped navigate a surge in streaming demand.
If that Truist analyst is right, Limelight Network is just starting out on a bright journey. Hit the books, and pay close attention to LLNW stock.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer for InvestorPlace.com.