Internap Network Services (INAP) reported weak Q1 2009 results. Although the
company has been gaining traction in its data center services, it is witnessing softness in its content delivery network (CDN) and Internet Protocol (IP) business.
Much of this has been caused by the weakening economy, which resulted in a higher churn rate, longer sales cycle and customer reduction in Q109. Though the company is winning over new customers and making important upgrades to CDN, performance has
been lackluster for the last few quarters.
Thus, we reiterate our Sell rating on INAP with a price target of $2.50.Zacks Investment Research
