LinkedIn (LNKD) PT Lifted to $275 at SunTrust Robinson Humphrey Post Q4

SunTrust Robinson Humphrey analyst Robert Peck raised his price target on Buy-rated LinkedIn (NYSE: LNKD) to $275.00 (from $240.00) following Q4 results and likely conservative guidance.

Peck's Points. 1) The quarter beat on revenue, EBITDA, and EPS handily; 2) 1Q and FY2015 revenue/ EBITDA / EPS guidance are likely conservative as usual (better than feared), our analysis shows potential for upside through the year; 3) TAS showed continued strong growth and a price increase will aid 2015; 4) Marketing Solutions outperformed, accelerating to 56% growth y/y in the quarter (Sponsored Updates 33% of revs), member UVs accelerated to +23% y/y from +16% and page views to +36% y/y from +27% (content strategy); 5) Premium Subscriptions growth slowed slightly as Free Trial impacted traditional subs business. Sales Navigator is being well received and they are still ramping sales force. 6) Incremental margins increased to 34% from 33%.

The firm's FY2015 revenue/EBITDA/EPS forecast goes to $2.94B/$782M/$2.97 from $2.91B/$817M/$2.75 and our FY2016 goes to $3.8B/$1.1B/$3.98

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 $237.97 yesterday.

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