What happened

Shares of Limelight Networks (EGIO -2.80%) were trading 10.3% higher at 1:30 p.m., EDT today. The content delivery network (CDN) company soared thanks to a bullish analyst note.

So what

In a note to investors, Craig-Hallum analyst Jeff Van Rhee boosted his price target on Limelight's stock from $3.50 to $4. He also lifted his rating of the stock from hold to buy, indicating that it looks like a solid investment today. Limelight shares closed Thursday's trading at $2.53 per share, so the analyst's new price target represents a potential upside of 58%.

A blue Ethernet networking cable twisted into the shape of a cartoon-style cloud.

Image source: Getty Images.

Now what

Van Rhee argued that Limelight's low price reflects "near-peak or peak pessimism," leaving plenty of room for positive returns if the bears are proven at least partly wrong.

The company will soon have an opportunity to pull that trigger. Limelight will report third-quarter results in the first week of November, and that event just might get the bullish ball rolling. In the meantime, investors should look for clues to Limelight's current performance as earnings reports start to roll in from the digital media industry.

The bottom line has been printed in red for each of the last five quarterly reports. Taken together with Limelight's ongoing cost-savings program, strong viewership in the media-streaming sector should translate into decent revenue growth and maybe even positive earnings.