LinkedIn (LNKD) PT Lifted to $245 at RBC Capital on Solid Q3

RBC Capital analyst Mark Mahaney reiterated an Outperform rating and listed his price target on LinkedIn (NYSE: LNKD) to $245.00 (from $235.00) following a solid Q3 beat with Revenue, EBITDA Margin, and Key Metrics all better than expected.

The keys to the quarter, according to the analyst: 1) Consistent Revenue Growth: 45%, 45%, 43% – those were the Q3 Y/Y growth rates for the Talent, Marketing & Subscriptions segments…nice consistency; 2) Strong Corporate Solutions Customer Adds – 2,200 net adds in Q3 vs. 1,700 in Q3:13…so LNKD still in Hunter – not Farmer – part of the S-Curve. And ARPU growth was a solid 5% Y/Y; 3) LNKD Announced Mid-Single-Digit Price Increase For Talent Solutions – will begin in January ’15…first increase since ’13…probable evidence of pricing power; & 4) Solid Overall User & Engagement Growth – Registered Members (28% Y/Y), Visiting Members (16% Y/Y), and Page Views (28% Y/Y)…the platform is becoming more valuable.

The firm 2015E revenue by 6% to $3.00B, and EBITDA is increased by 5% to $799MM.

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 $202.90 yesterday.

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