UPDATE: LinkedIn Downgraded at Bank of America Amid Slower Job Postings
In a published report Tuesday, Bank or America analyst Justin Post downgraded LinkedIn (NYSE: LNKD) from Buy to Neutral. The price target has been decreased to $240 from the prior $270.
Post comments on the downgrade, "While we are not early with our call, based on slowing job postings and usage growth in 4Q we think 14/15 estimates may be aggressive."
The report noted, "While we continue to believe in LinkedIn's long-term enterprise opportunities (recruiting, HR, sales) and are positive on lack of competitive platforms, we think recent data suggest more caution on tough 2014 comps against a slew of successful products released in late 2012, potential investment in products like Sales Navigator (LinkedIn added a lot of headcount in 3Q and 51% headcount growth was close to revenue growth) that could lead to below-Street profit guidance, and the company's ability to consistently deliver meaningful revenue upside."
Risks of the downgrade were also highlighted in the report; including Sales Navigator enterprise fast sales, mobile ad pricing growth, new social products, and improving economy, all of which could lead to an optimistic outlook on 2015 revenues.
LNKD closed Monday at $203.92 and is currently trading at $206.04.
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