Piper Jaffray's Munster Cuts Numbers on LinkedIn (LNKD) Amid Lower Outlook But Keeps 'Overweight'; 'This Too Will Pass'
Piper Jaffray analyst Gene Munster cut his price target on LinkedIn (NYSE: LNKD) to $246.00 (from $297.00) following results and weak guidance after the close but maintained his Overweight rating.
Munster commented, "LinkedIn reported Mar-15 essentially inline with the Street, but guided down 2015 adjusted EBITDA by 23% to invest in growth. Revenue guidance for 2015 excluding FX was about 1% below the Street, with FX adding an additional ~3% headwind. While investors have been typically applauding increased spending from social leaders (i.e., Facebook), investors were caught of guard with the outlook, and reminded of the roller coaster ride in owning shares of LNKD which sent shares down 20% in the aftermarket. We believe the surprise of the investment will quickly fade, and investors will return to owning LNKD given the spending is likely the right move long term. Reiterating Overweight but lowering price target to $246 from $297 to reflected lowered EBITDA."
The firm cut FY 2015 EPS from $2.96 to $1.91 and FY 2016 EPS from $3.91 to $3.31.
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Shares of LinkedIn closed at $252.13 yesterday.