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Canaccord Genuity Previews LinkedIn (LNKD) Q4

February 5, 2013 3:47 PM EST Send to a Friend
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Price: $175.57 -0.42%

Rating Summary:
    28 Buy, 13 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 23 | Down: 10 | New: 20
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Canaccord Genuity reiterated its Buy rating and $140 price target on LinkedIn (NYSE: LNKD) into Q4 results due on Thursday, February 7, 2013 after the market closes.

The firm said while LinkedIn's premium valuation is "well-deserved" it gives them pause into earnings, although they believe its competitive position and business momentum are very strong.

Potential positives highlighted by the analyst: "continued ramp in member engagement from new and better products/features; our expectation for a 23-point deceleration in 2013 revenue growth from 82% to 59% appears very reasonable, as does flattish Q4 margin expectation on ~11% sequential revenue growth."

Potential negatives highlighted by the analyst: "consensus expectations for Q1 margins may be aggressive; member growth is decelerating meaningfully (although in line with our model); 2013 needs to show considerable leverage (330 bps of EBITDA margin expansion from Q4/12 to Q4/13) to hit consensus.

"We like the stock into earnings on the fundamental outlook. If the stock repeats Q3’s performance (good numbers and a pull-back on valuation), we would be buyers."

For an analyst ratings summary and ratings history on LinkedIn click here. For more ratings news on LinkedIn click here.

Shares of LinkedIn closed at $123.30 yesterday.




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