• Goldman Sachs analyst Brett Feldman downgraded the rating on edge cloud services provider Limelight Networks Inc (NASDAQ: LLNW) from Neutral to Sell.

• Feldman lowered the price target from $3 to $2.5, implying a 21% downside potential.

• Feldman's "cautious outlook" reflects Limelight's high exposure to content delivery networks, representing 80% of revenue.

• The backdrop became increasingly challenging from continued pricing pressure and the traffic tailwinds to the business as the pandemic lost steam. Also, Limelight's ambitious targets for 2021 imply a steep ramp in the second half of the year's revenue.

• Limelight missed both the revenue analyst consensus for Q4 FY20 and Q1 FY21. It missed the EPS consensus for both quarters by 200% - 250%.

• Limelight will announce the Q2 results, followed by the earnings call on July 29.

• The stock lost 60.2% last year.

• Price action: LLNW shares traded lower by 4.84% at $2.95 in the premarket session on the last check Tuesday.

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