The stock being down 13% over the past six months vs. a 12% rise in the S&P creates a buying opportunity in LinkedIn (LNKD), says analyst Mark Mahaney, upping it to Outperform with price target lifted to $250.
Working against the stock were overly aggressive Street estimates, a heavier-than-expected 2014 investment outloo, a greater-than-expected slowdown in Talent Solutions growth, and uncertainty over Marketing Solutions format changes, says Mahaney.
"The first issue has been addressed – Street 14 EBITDA estimates have been reduced 11% since the beginning of this year. And we believe LNKD’s 14 investments – salesforce buildouts, product and market expansions, and acquisitions – are coming from a position of strength against large TAMs. Our very recent proprietary work helps address Drag Issues 3 & 4. Hence, the Upgrade..."
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