In a research report published Thursday, RBC Capital analyst Mark Mahaney upgraded shares of LinkedIn Corp (NYSE:LNKD) from Market Perform to Outperform, with a price target of $160, as he believes that the company is well positioned against several large total addressable market (TAMs). LinkedIn shares closed today at $136.51, up $2.66 or 1.99%.
Mahaney wrote, “Although well off recent lows, LNKD shares are off 41% YTD, trading at a reasonably attractive 13X ’17 EV/EBITDA. The key correction driver has been the material growth deceleration management guided to for FY16. And the key action question is – Which factor is most at fault?: market share losses, market maturation, execution challenges, or macro. To try to answer this, we ran our 4th survey of HR professionals, analyzed comScore Web traffic trends for leading Online Recruitment properties, and updated our market opportunity analysis for Marketing Solutions. We conclude that LNKD is still reasonably well positioned against very large Recruitment & Advertising TAMs.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Mahaney has a yearly average return of 19.2% and a 63% success rate. Mahaney has a -5.7% average return when recommending LNKD, and is ranked #7 out of 3990 analysts.
Out of the 36 analysts polled by TipRanks, 20 rate LinkedIn stock a Buy, while 16 rate the stock a Hold. With a return potential of 26%, the stock’s consensus target price stands at $171.35.