Analyst Sees LinkedIn (LNKD) Offering Private Enterprise Social Network; Maintains Buy, $145 Target
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Price: $184.31 +1.10%
Rating Summary:
19 Buy, 14 Hold, 0 Sell
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Today's Overall Ratings:
Up: 0 | Down: 1 | New: 6
Rating Summary:
19 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 0 | Down: 1 | New: 6
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Capstone's Rory Maher had some positive comments about LinkedIn (Nasdaq: LNKD) Tuesday morning following Monday's news Microsoft (Nasdaq: MSFT) will acquire Yammer for $1.2 billion in cash.
Maher believes the Street is not appropriately valuing LinkedIn's database of employee information and the upcoming products which will package this data. The analyst sees such products potentially adding $5 per share. An initiative which LinkedIn is currently testing within a private internal group of employees could eventually be expanded to a private enterprise social network, according to Maher. He sees the networking generating some $30-$70 million in sales.
The Capstone analyst also pointed to recent Yammer growth as highlighting solid demand for enterprise social networks. Yammer saw users jump 25 percent to 5 million from the fourth to first quarter.
Maher maintains a Buy rating and $145 price target on shares of LinkedIn.
Based on Monday's closing stock price of $103.05, the Capstone analyst's price target implies potential price appreciation of about 41 percent.
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Maher believes the Street is not appropriately valuing LinkedIn's database of employee information and the upcoming products which will package this data. The analyst sees such products potentially adding $5 per share. An initiative which LinkedIn is currently testing within a private internal group of employees could eventually be expanded to a private enterprise social network, according to Maher. He sees the networking generating some $30-$70 million in sales.
The Capstone analyst also pointed to recent Yammer growth as highlighting solid demand for enterprise social networks. Yammer saw users jump 25 percent to 5 million from the fourth to first quarter.
Maher maintains a Buy rating and $145 price target on shares of LinkedIn.
Based on Monday's closing stock price of $103.05, the Capstone analyst's price target implies potential price appreciation of about 41 percent.
Visit our Analyst Ratings page to track all the market-moving analyst action.
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