Citigroup On LinkedIn: Trends Remain On Track, Reiterates Neutral Rating

reported a mostly in-line third quarter results on Thursday after market close, resulting in analysts at Citigroup reiterating a Neutral rating based on valuation issues with a price target raised to $206 from a previous $188. “LinkedIn reported third quarter results essentially in-line with our estimates,” Mark May of Citigroup wrote in a note to clients on Friday. “And, while fourth quarter guidance is below estimates, the company's historical rate of out-performing guidance as well as underlying trends in the third quarter suggest slight upside potential to our fourth quarter estimates is likely.” May notes that LinkedIn's metrics including enterprise recruiter customer adds, member growth and engagement, page view and page view monetization and incremental margins were “all positive.” LinkedIn guided its fourth quarter revenue to $600 million to $605 million, below May's estimates of $617 million. Adjusted EBITDA guidance of $153 million to $155 million also falls short of May's $165 million estimate. However, the analyst adds that the company has historically out-performed revenue guidance by approximately five percent and EBITDA guidance by 10 percent.