LinkedIn (LNKD) Gets Some Wall Street Love
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Price: $195.96 --0%
Rating Summary:
10 Buy, 30 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 19 | New: 36
Rating Summary:
10 Buy, 30 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 14 | Down: 19 | New: 36
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LinkedIn (NYSE: LNKD) is gettin' some good lovin' Tuesday morning... the Wall Street kind.
Two prominent Wall Street investment banks - JPMorgan and Morgan Stanley - upgraded shares of the professional social media company to Overweight, each firm's equivalent of a Buy rating.
JPMorgan lifted its rating from Neutral to Overweight while lowering the stock's price target from $98 to $84. Analyst Doug Anmuth said shares have become more compelling following the 36 percent slide since the July 15 high and 20 percent since announcing third-quarter earnings and a follow-on offering on November 3.
While shares have been hit recently, Anmuth notes the company has shown strong operational performance. "We believe deeper corporate penetration and increasing member engagement will drive strong results going forward," he commented.
The company's three business segments continue to deliver, the firm notes. Hiring Solutions is up 160 percent, Marketing Solutions up 113 percent and Premium Subscriptions up 81 percent. This is outpacing their prior estimates of 133 percent, 99 percent, and 56 percent, respectively.
"We are encouraged by the company's growing penetration in the enterprise market (~7,400 customers), accelerating member growth, and strong user engagement trends", Anmuth said. "Importantly, despite very heavy investments in field sales, international expansion, and new roducts, LinkedIn continues to post solid mid-teens EBITDA margins and we look for margin expansion into 2012."
The firm is raising its fourth-quarter revenue estimate to $162.4 million, which represents 99 percent growth. EBITDA estimates drop from $23.1 million to $21.8 million due to increases in Sales & Marketing, R&D and G&A.
While LinkedIn's float has more than doubled since the May IPO, the firm said it is fine with this as the operational performance makes the current share price compelling.
For more ratings on LinkedIn please visit Ratings Insider.
Shares of LinkedIn are up 4.2 percent to $72.90 in early action Tuesday.
Two prominent Wall Street investment banks - JPMorgan and Morgan Stanley - upgraded shares of the professional social media company to Overweight, each firm's equivalent of a Buy rating.
JPMorgan lifted its rating from Neutral to Overweight while lowering the stock's price target from $98 to $84. Analyst Doug Anmuth said shares have become more compelling following the 36 percent slide since the July 15 high and 20 percent since announcing third-quarter earnings and a follow-on offering on November 3.
While shares have been hit recently, Anmuth notes the company has shown strong operational performance. "We believe deeper corporate penetration and increasing member engagement will drive strong results going forward," he commented.
The company's three business segments continue to deliver, the firm notes. Hiring Solutions is up 160 percent, Marketing Solutions up 113 percent and Premium Subscriptions up 81 percent. This is outpacing their prior estimates of 133 percent, 99 percent, and 56 percent, respectively.
"We are encouraged by the company's growing penetration in the enterprise market (~7,400 customers), accelerating member growth, and strong user engagement trends", Anmuth said. "Importantly, despite very heavy investments in field sales, international expansion, and new roducts, LinkedIn continues to post solid mid-teens EBITDA margins and we look for margin expansion into 2012."
The firm is raising its fourth-quarter revenue estimate to $162.4 million, which represents 99 percent growth. EBITDA estimates drop from $23.1 million to $21.8 million due to increases in Sales & Marketing, R&D and G&A.
While LinkedIn's float has more than doubled since the May IPO, the firm said it is fine with this as the operational performance makes the current share price compelling.
For more ratings on LinkedIn please visit Ratings Insider.
Shares of LinkedIn are up 4.2 percent to $72.90 in early action Tuesday.
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