SunTrust Robinson Humphrey Sees LinkedIn (LNKD) Guidance as Likely Conservative

SunTrust Robinson Humphrey analyst Robert Peck reiterated a Buy rating and $240 price target on LinkedIn (NYSE: LNKD) following Q3 results and guidance saying Q4 guidance is likely conservative.

Peck commented, "LinkedIn reported 3Q'14 last night and our main takeaways are: 1) the quarter beat on revenue (all segments), EBITDA, and EPS; 2) 4Q revenue/ EBITDA / EPS guidance of $603M/$154M/$0.49 (mid-point) is likely conservative as usual; 3) TAS showed strong growth and a price increase will aid 2015; 4) Marketing Solutions performed well vs. tougher comp driven by robust growth in Sponsored Updates (now 33% of revs); 5) Sales Navigator, though still early, is being well received and is now 25% of Premium Subscription revenues and has recently signed large contract with SAP; and 6) incremental margins remained at 33.3% vs. EBITDA margins of 26.6%."

The firm's FY2014 revenue/EBITDA/EPS forecast goes to $2.19B/$571M/$1.93 from $2.17B/$551M/$1.80 and FY2015 goes to $2.91B/$817M/$2.75 from $2.89B/$792M/$2.4

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 $202.90 yesterday.

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