Canaccord Genuity Have Increased Their Estimates for LinkedIn Corp. (NYSE:LNKD)



Michael Graham, an analyst at Canaccord Genuity, raised his target price for LinkedIn Corp. (NYSE:LNKD). Based on the revenue generated by the business, increased estimates by the company and opportunity for new product, the price target was increased to $300 from $285. According to Mr. Graham, LinkedIn Corp. (NYSE:LNKD) is on the verge of exploiting a new opportunity, which could turn out to be a large source of income and revenue for the company. Therefore, pretty soon, the estimates will be raised by the company too and so, with this prediction, the analyst raised his price on the stock.

LinkedIn Corp. (NYSE:LNKD) has started a new platform for recruitment purposes. This platform is called “Talent Solutions”. The analysts believe that it has potential to grow stably in the short-term. The company has another new tool, “Sales Navigator”. About 200,000 subscribers are already using the tool and the rate at which it is being adopted is also good. LinkedIn Corp. (NYSE:LNKD) believes that its “Marketing Solutions” tool also has the most growth potential for the current fiscal year, 2015. Marketing Solutions is growing consistently; the volume is increasing, Sponsored Updates’ prices are also increasing and “Lead Accelerator” is a new tool which is being launched.

Canaccord increased their estimates for LinkedIn Corp. (NYSE:LNKD) for the fiscals 2015 and 2016. Canaccord’s previous estimates were that LinkedIn Corp. (NYSE:LNKD) will report sales worth $2,942 million in fiscal 2015. However, now the firm has raised their expectations to $2,947 million. As for the sales, the Canaccord firm had previously estimated that LinkedIn Corp. (NYSE:LNKD) would make $3,879 million, and now the estimate has been increased to $3,900 million. Meanwhile, the firm also increased their estimates on the EPS from $4.33 to $4.35.

Mr. Graham said that the LinkedIn Corp.’s (NYSE:LNKD) business has recurring revenue by nature. However, there are some key risks that the company faces and that Mr. Graham pointed out. One risk is that the fans of the company are super excited about the rights to stock and the other is the valuation challenge.

Currently, Canaccord’s analysts, Graham, has rated LinkedIn Corp.’s (NYSE:LNKD) stock at “buy”. Let’s take a wider view and look at the ratings of all the analysts who have given any rating to the LinkedIn Corp. (NYSE:LNKD) stock. Of these analysts, 30 have rated the stock “buy”, 10 have rated it “hold” and only two analysts have rated the stock “sell”. The consensus price on the stock for the 12-month duration is $289.08. Considering the closing price of the stock in the last trade session, this price indicates 8.5% return.

Currently the market capitalization of LinkedIn Corp. (NYSE:LNKD) is $33.15 million. During the Thursday trade session, LinkedIn Corp.’s (NYSE:LNKD) stock price increased by 0.55% and closed at $266.42.

LinkedIn Corp. (NYSE:LNKD) is a one of its kind social network. A network, that allows users to make their professional profiles, so that they can portray their skills and work experiences. Recruiters nowadays check LinkedIn profiles of their employees in several companies.

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