Collins Stewart Starts LinkedIn (LNKD) at Buy; Unique Solution With Large Market Opportunity And Near-Term Upside

Collins Stewart initiates coverage on LinkedIn (NYSE: LNKD) with a Buy. PT $86.00.

Collins analyst says, "LinkedIn has 131M members, a 20% share of global professional workforce and it is 15-35 times bigger than other professional networks like Xing and competitive Facebook apps like BranchOut...We recommend buying LNKD with a long-term holding horizon as it grows its penetration of the huge market opportunity. Our $86 target is based on DCF valuation with 22% 10-year revenue CAGR, EBITDA margin expansion to 31%, 12% discount rate and 6% perpetuity growth rate."

"In our eyes, key risks are potential global economic slowdown and a stock valuation that already incorporates part of the upside (at 62x 2013 PF EPS), leaving little room for error."

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 $61.73 yesterday.

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