LinkedIn (LNKD) PT Cut to $275 at RBC Capital; 'Outperform' Maintained
RBC Capital analyst Mark Mahaney lowered his price target on LinkedIn (NYSE: LNKD) to $275.00 (from $300.00) following Q1 results and weak guidance after the close. The firm maintained an Outperform rating.
The key's to the quarter, according to Mahaney:
1) Revenue Growth Deceleration Across All 3 Segments – Talent Solutions decel’ed 5pts to 36% Y/Y growth on a 4pt easier comp, due to FX and salesforce transition issues – LNKD seeing no pushback to its price increases…;
2) Strong Corporate Solutions Customer Adds – Accelerated Y/Y with 1,493 customers adds in Q1 vs. 1,400 in Q1:14;
3) Sponsored Updates Momentum – Growing to 40% of Marketing Solutions Revenue…seeing positive auction dynamics and increasing spend per advertisers; &
4) Solid Engagement Growth – Q1 exhibited positive platform dynamics, with strong growth across Members (23% Y/Y), Unique Visitors (18% Y/Y), and Page Views (31% Y/Y).
Revenue estimates unchanged, but ’15 EBITDA decreased 19% to $632MM.
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.