LinkedIn (LNKD) Strong Q2 and Conservative Guidance Create Buying Opportunity, Needham & Company Says

Needham & Company analyst Kerry Rice reiterated his Buy rating and bumped his price target on LinkedIn (NYSE: LNKD) to $260.00 (from $250.00) following strong Q2 results and conservative guidance, which creates a buying opportunity with the stock lower.

Rice commented, "LinkedIn 2Q15 revenue and EBITDA exceeded expectations, excluding lynda.com's upside contribution. While core LinkedIn guidance is modestly lower due to potential display advertising weakness, we expect guidance to prove conservative. Specifically, we expect high CPM Sponsored Updates and newly launched Lead Accelerator to offset the decline in display advertising. We also expect Talent Solutions growth to accelerate as record net new adds and near record ARPU propel revenue upwards. Finally, we expect the strong growth of Sales Solutions to continue given that the growth opportunity is still in the early stages. Profitability should also improve despite pressure from lynda.com. LinkedIn remains our top largecap recommendation as we expect the company to continue to exceed expectations."

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 $227.15 yesterday.

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