Evercore Partners Upgrades LinkedIn (LNKD) to Overweight, Sales Navigator to Drive Upside
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Price: $195.96 --0%
Rating Summary:
10 Buy, 30 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 18 | Down: 23 | New: 10
Rating Summary:
10 Buy, 30 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 18 | Down: 23 | New: 10
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Evercore Partners upgraded LinkedIn (NYSE: LNKD) from Equal Weight to Overweight with a price target of $140.00 (from $115.00).
The firm said sales force enhancement productivity tool, Sales Navigator , will driving material long-term revenue upside. Specifically, Analyst Ken Sena sees Sales Navigator generating revenues of $600 million in 5 years.
The analyst also expects a premium subscriptions revenue ramp. "We now forecast Premium Subscriptions revenues (~20% of total) will increase at a 36% CAGR from $182 million in 2012 to $1.14 bn in 2018, versus a prior CAGR estimate of 19%," the analyst said. " On higher Premium Subscription revenues, total revenue CAGR increases 200 bps to a 36% CAGR or to $6.1 billion by 2018."
Short term the firm is trimming Q3 margins from 13.8% to 11.9% and EPS lowers from $0.28 to $0.14.
For this report, we trialed the product, integrated into Evercore's CRM system, and worked with sales counterparts at LinkedIn and Salesforce.com (CRM) to better learn its various applications. A favorable account of the product and its addressable market, in addition to growing core advantage among its other segments, leads us to see share upside even at current valuation
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 $113.77 yesterday.
The firm said sales force enhancement productivity tool, Sales Navigator , will driving material long-term revenue upside. Specifically, Analyst Ken Sena sees Sales Navigator generating revenues of $600 million in 5 years.
The analyst also expects a premium subscriptions revenue ramp. "We now forecast Premium Subscriptions revenues (~20% of total) will increase at a 36% CAGR from $182 million in 2012 to $1.14 bn in 2018, versus a prior CAGR estimate of 19%," the analyst said. " On higher Premium Subscription revenues, total revenue CAGR increases 200 bps to a 36% CAGR or to $6.1 billion by 2018."
Short term the firm is trimming Q3 margins from 13.8% to 11.9% and EPS lowers from $0.28 to $0.14.
For this report, we trialed the product, integrated into Evercore's CRM system, and worked with sales counterparts at LinkedIn and Salesforce.com (CRM) to better learn its various applications. A favorable account of the product and its addressable market, in addition to growing core advantage among its other segments, leads us to see share upside even at current valuation
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 $113.77 yesterday.
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