LinkedIn (LNKD) PT Cut to $180 at FBR Capital Following Weak Guidance

FBR Capital analyst William Bird reiterated a Market Perform rating and cut his price target on LinkedIn (NYSE: LNKD) to $180.00 (from $211.00) following Q1 results and weak guidance.

Analyst William Bird commented, "LNKD’s 2Q15 and 2015 guidance were materially below the Street on revenue, adjusted EBITDA, and EPS. Some of the guidance miss was structural (i.e., display ad declines, particularly acute in EMEA), some of it was transitory (i.e., a $50M FX headwind for the balance of the year, a Lynda.com acquisition write-down to deferred revenues, which could take 15 months to rebuild, plus a full $100M of cost onboarding, and 1x transaction costs of ~$25M), while some of the miss was operational and believed to be temporary (i.e., high dollar churn attributed to an account rep realignment under which 60% of accounts have a new rep.). We view LinkedIn as a good company at a bad price, and we believe the context of growth moderation could create a challenging backdrop for stock outperformance in this high multiple name. Our new price target is $180 (previously $211)."

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 $252.13 yesterday.

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