William Blair Assigns Market Perform On LinkedIn Shares

In a research report issued today, William Blair analyst Timothy Mchugh assigned a Market Perform rating on LinkedIn Corp (NYSE:LNKD). No price target was provided.

McHugh wrote, “We expect LinkedIn to exceed the high end of management’s guidance for the third quarter, with only very modest outperformance relative to the consensus. Based on our estimates, global job postings growth at LinkedIn decelerated in the third quarter, particularly in the United States and other key international markets (i.e., the United Kingdom), which account for a majority of revenue. While we view job postings as mainly a directional (rather than a precise) indicator of demand and we recognize that a variety of factors can affect job postings (including the fact that LinkedIn sells job slots, not job postings directly), the combination of this trend with a likely modest headwind from currency and a gradual deceleration in the company’s deferred revenue growth rate during the last year dampens our expectations for outperformance in the Talent Solutions segment. Our current revenue estimate (which is in line with the high end of management’s guidance) is for 39% growth in the third quarter, a deceleration from 47% in the second quarter, 46% in the first quarter, and 47% in the fourth quarter.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Timothy McHugh has a total average return of 18.7% and a 72.7% success rate. McHugh is ranked #555 out of 3335 analysts.

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