UPDATE: SunTrust Initiates LinkedIn at Neutral on Valuation

In a report published on Monday, SunTrust analyst Robert S. Peck initiated coverage on LinkedIn LNKD with Neutral rating and $215 price target.

In the report, SunTrust commented, "We are initiating coverage of LinkedIn with a Neutral rating and a $215 2014 year end price target. Our target is derived around a central tendency of value methodology that analyzes SaaS historical multiples as well as current and applied forward multiples of 35x EV/EBITDA, 60x P/E, 60x P/FCF, and 9.5x EV/Revenues. Our rating is a reflection of valuation and we would look to be more constructive upon a pullback. Building the “Professional Platform as a Service” – LinkedIn has done a great job building the leading employment seeker and talent recruiter community. We acknowledge this success, but further, we think LinkedIn is building a much broader and a more dynamic offering – succinctly, we think LinkedIn is building the professional's Platform as a Service (PaaS)."

LinkedIn closed on Monday at $198.80.