Cantor Maintains Buy On LinkedIn On Solid 2Q14 Results and Outlook; Raises PT To $250
Cantor Fitzgerald analyst Youssef Squali today joined the crowd maintaining a Buy rating on LinkedIn (LNKD) and raising his price target to $250, on the back of strong 2Q:14 results, with revenue/EBITDA exceeding consensus estimates by 4%/19%, respectively. Guidance was also solidly ahead of expectations.
Squali noted, “Sustainable growth in corporate customers and ARPU, strong user growth/engagement and new products roll out should continue to drive outsized revenue growth/margin expansion over time”. The analyst explained his new price target saying, “Our $250 PT (from $225 previously) is based on a 10-year DCF, assuming a 12% WACC and 4% terminal growth rate. Following 2Q:14 results and management’s latest outlook, we’re adjusting our FY14 estimates to $2,154.0M in revenue and $550.1M in EBITDA, from $2,094.4M and $509.6M, previously.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform analyst, Youssef Squali has a 31.8% average return and a 76.9% success rate. Squali has a -3.9% average return when recommending LNKD, and is ranked #4 out of 3195 analysts.