LinkedIn rallies after Stifel assigns Buy rating, $300 PT

Stifel's LinkedIn (LNKD +4.6%) PT represents a 29% premium to where shares currently trade, and a 161% premium to where they traded to start the year. It also equals a valuation of $33.6B, or 135x consensus 2014 EPS.

Analyst Michael Purcell gushes with praise for the professional social network, declaring it's "evolving into a critical daily or weekly platform for professional workers of all types," and will "remain pivotal in the increasingly complex forces of global business expansion and labor."

Sell-side commentary on LinkedIn has been quite bullish lately. ITG Research recently reported LinkedIn's Q4 was tracking above consensus, and Needham has reiterated a Buy and $280 PT following an upbeat investor meeting with CFO Steve Sordello.

Among other things, Needham is upbeat about LinkedIn's Sales Navigator social selling tool (just beginning to ramp), and notes management sees many HR opportunities, including training and performance management.

Needham: "The holy grail is to recruit, train and measure the effectiveness of employees all through one platform." Such an offering could put LinkedIn into competition with a variety of cloud HR software firms, such as Workday, Ultimate Software, and Cornerstone OnDemand.

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Comments (7)
  • wigit5
    , contributor
    Comments (4365) | Send Message
    I just saw an article titled Linkedln's 29% downside or something like that... bad timing lol
    15 Nov 2013, 10:40 AM Reply Like
  • nguyenvanphuoc
    , contributor
    Comments (388) | Send Message
    Linkedin is interesting, but as soon as I saw people that barely knew me endorsing me for skills that would have no basis to judge me on, I realized that the site may have jumped the shark as a meaningful evaluation tool.
    15 Nov 2013, 10:44 AM Reply Like
  • wigit5
    , contributor
    Comments (4365) | Send Message
    Yeah it still has the problem of strangers trying to 'fluff' their network by connecting to people they don't know and endorsing you for stuff they can't possible know. It definitely isn't a good tool for evaluating or selecting job candidates. But it is a good way for professionals to keep in touch, and keep up with where you are in your career.
    15 Nov 2013, 10:50 AM Reply Like
  • Gowiththeflow
    , contributor
    Comments (27) | Send Message
    What? Things they can't possibly know? You mean the guy that endorsed me for customer service skills after having met me at a wedding didnt know what he was talking about?



    On LNKD no less. Ironic.
    15 Nov 2013, 12:19 PM Reply Like
  • SharkDude
    , contributor
    Comments (784) | Send Message
    Simply amazing. 1999 all over again. Someone go read Wedbush's report on TSLA a month ago. This report is similar. Desperate to justify target raise.
    15 Nov 2013, 11:14 AM Reply Like
  • Gowiththeflow
    , contributor
    Comments (27) | Send Message
    STIFELS upgrade on a friday no less stinks of options manipulations in my mind.


    Someone is hard pressed to get the price closer to a 230 strike where it is today and therefore came out and said something positive about a 26 Billion dollar company that is worth probably 2. If.
    15 Nov 2013, 12:21 PM Reply Like
  • redsstock
    , contributor
    Comments (634) | Send Message
    soon many of these high flyers will china reform its economies and let its currency float, china will abort its support of buying dollars and USA debt. since the FED/our govt plainly printing dollars thus popping up Bubbly stock like LNKD, i see downside risk for these stocks that are not making the coming years it is more about earnings, there will be shortage of liquidity once foreign govt minimize buying our treasuries and dump the dollar. i believe that chinese reform is directed towards abandoning its massive support of USA debt and our dollar.
    15 Nov 2013, 02:53 PM Reply Like
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