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.

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