Craig-Hallum cuts Edgio target, disagrees with hype from ‘promoters’

Craig-Hallum lowered the firm’s price target on Edgio (EGIO) to $10 from $30 and keeps a Hold rating on the shares. The analyst sates some of the recent run-up in the stock has been due to “buzz from a few promoters” that Edgio is an “edge” play, an artificial intelligence play, and about to benefit from a new reseller relationship with Microsoft (MSFT). The firm does not agree with any of those. At its core, Edgio is a streaming centric content delivery network, with improving plays on security and app development / deployment, the analyst tells investors in a research note. Hallum believes that while the company can claim technical leadership in these areas, converting any of these products to sustained revenue growth and free cash flow generation “has been and likely remains hard to come by.”