UPDATE: JG Capital Initiates LinkedIn Corporation at Neutral on Earnings Expectations
JG Capital initiated coverage on LinkedIn Corporation (NYSE: LNKD) with a Neutral rating and a $135.00 price target.
JG Capital commented, "LinkedIn.com is the world's largest professional social network with >187mm members, growing significantly from 2mm members in 2004. Given LNKD's TAM of professionals worldwide is 640mm, we think there is still a tremendous growth opportunity. … We think EBITDA margins can increase to 30%+ in the next five years, driven by highmargin self-service advertising, subs revenue and leverage. … While we love LNKD's business, we are concerned with very high expectations coming into the results on Feb 7th."
LinkedIn Corporation closed at $120.26 on Wednesday.
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