SunTrust Robinson Humphrey Downgrades LinkedIn (LNKD) to Neutral
SunTrust Robinson Humphrey downgraded LinkedIn (NYSE: LNKD) from Buy to Neutral with a price target of $155.00 (from $250.00).
Analyst Robert Peck commented, "While our preview note (link) was directionally correct in calling for a "beat quarter" but warning on the potential guide, we did not appreciate the magnitude of the guide risk and challenge to our 2H thesis. We were wrong - we hope to do better in the future. We lower our rating to Neutral from Buy and our target to $155 from $250. Our target implies 15x EBITDA, 40x PE, and 4x Revs multiples vs. >20% top line growth. These are in-line with re-rated/compressed comp group multiples on a median basis, eliminating the premium previously applied to LinkedIn."
1Q/2016 revenue/EBITDA ests. go to $822M/$191M and $3.65B/$976M from 865M/$195M and $3.96B/$1B. 2017 ests. are $4.6B/$1.26B.
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 $192.28 yesterday.