What happened

Shares of Limelight Networks (NASDAQ:LLNW) are rising today, up 7.5% as of 1:17 p.m. EDT, after investors were quick to embrace a bullish report from analyst firm Truist.

So what

The content delivery network (CDN) specialist got a buy rating and a $9 share price target from Truist analyst Greg Miller. The CDN market is accelerating its growth in 2020 due to coronavirus-boosted interest in media-streaming services, and Limelight is gaining market share at this crucial moment in time. Miller also noted that Limelight should be able to meet its long-term financial targets of 15% annual revenue growth and 25% EBITDA margins thanks to the beneficial effects of COVID-19 lockdown policies.

A smiling young man and woman cuddle up on the TV couch.

Image source: Getty Images.

Now what

Limelight's stock has nearly doubled over the last 52 weeks, posting an 91% one-year return and a 54% gain in 2020.The company is climbing closer to sustainable bottom-line profits with every quarterly report and the CDN service offers some features that larger sector rival Akamai Technologies can't match yet, such as edge computing functions and a tight focus on the promising digital media market. In that light, Miller's analysis looks correct and today's market reaction makes sense.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.