uploads///

Most Analysts View LinkedIn as a ‘Buy’

By

Updated

Axiom maintains a buy on LinkedIn

Axiom analyst Victor Anthony stated that LinkedIn (LNKD) reported a strong 4Q15, beating revenue, adjusted EBITDA (earnings before interest, tax, depreciation, and amortization), and non-GAAP (generally accepted accounting principles) EPS (earnings per share) estimates.

Anthony said, “The results were solid and followed a solid 3Q15 print as well after a tough 1H2015f. However, we point to the continuation of the strong topline growth of the core Talent Solutions business as reason to continue with the growth story.” Axiom attributed LinkedIn’s weak guidance to a slow macroeconomic environment in Asia and Europe, the Middle East, and Africa.

Article continues below advertisement

Stock downgraded by Atlantic Equities, RBC, and JPMorgan Chase

On February 5, 2016, Atlantic Equities downgraded LinkedIn’s stock to a “neutral” from an “overweight” rating. JPMorgan Chase (JPM) also downgraded LinkedIn to “neutral,” whereas RBC Capital Markets downgraded it to “sector perform” on the same day. RBC also drastically lowered its price target on the stock to $156 from $300.

On February 4, 2016, Vetr upgraded shares of LinkedIn to a “strong-buy” rating from a “buy” rating. It currently has a price target of $218.64 on the stock.

Out of 43 analysts covering the stock, 37 have issued “buy” recommendations, and six have issued “hold” recommendations. The analyst stock price target for the company is $272.72, with a median target estimate of $280. LinkedIn is thus trading at a discount of 119% to its median target.

Peer companies Facebook (FB) and Twitter (TWTR) are currently trading at discounts of 22% and 81%, respectively, to their analyst target estimates.

LinkedIn accounts for 4.3% of the First Trust Dow Jones Internet ETF (FDN).

Advertisement

More From Market Realist