RBC Capital Upgrades LinkedIn (LNKD) to Outperform, Weakness Creates Buying Opportunity

February 26, 2014 6:19 AM EST Send to a Friend
Get Alerts LNKD Hot Sheet
Price: $198.52 -3.34%

Rating Summary:
    31 Buy, 11 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 29 | Down: 28 | New: 24
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RBC Capital upgraded LinkedIn (NYSE: LNKD) from Sector Perform to Outperform with a price target of $250.00 (from $225.00). Analyst Mark Mahaney said underperformance in the shares has created a buying opportunity.

"Over the past 6 months LNKD shares have traded down 13% vs. a 12% increase in the S&P 500. Drag Issues have included: 1) overly aggressive Street estimates, 2) a heavier than expected investment outlook for ’14, 3) a greater-than-expected slowdown in Talent Solutions revenue growth, and 4) uncertainty over Marketing Solutions format changes," Mahaney comments. "The first issue has been addressed – Street ’14 EBITDA estimates have been reduced 11% since the beginning of this year. And we believe LNKD’s ’14 investments – salesforce buildouts, product and market expansions, and acquisitions – are coming from a position of strength against large TAMs. Our very recent proprietary work helps address Drag Issues 3 & 4. Hence, the Upgrade..."

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 $209.84 yesterday.


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