Evercore ISI Raises Price target on LinkedIn (LNKD) to $235 Following 3Q
Evercore ISI reiterated a Hold rating on LinkedIn (NYSE: LNKD), and raised the price target to $235.00 (from $211.00), following the company's 3Q earnings results. After stripping out the impact of its Lynda acquisition, billings increased 22%, which compares to +30% growth in reported revenues.
Analyst Ken Sena commented, "LinkedIn reported a better than expected quarter with billings, revenues and margins showing improved performance, even stripping out the Lynda acquisition. While billings growth (x-Lynda) remains suppressed relative to revenue growth, billings acceleration was witnessed vs. the prior period (22% vs. 20%). Meanwhile, engagement showed some further deceleration, which we measure on the basis of UVs divided by active members and y/y growth. Still, in weighing the upside across billings, revenues and particularly margins, which were further supported by the company’s fourth quarter guide, we are increasing our 2016 EBITDA 6% and increasing our target from $211 to $235."
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Shares of LinkedIn closed at $217.00 yesterday.