LinkedIn Shares Surge 2% As Wells Fargo Initiates Coverage

Shares of LinkedIn Corp LNKD spiked up over 2 percent at Thursday’s open.

The price action came amid Wells Fargo initiating coverage on the stock with an Outperform rating and valuation range of $260 to $270.

Wells Fargo analysts assumed that “LNKD will post a 31 percent 2014-2016 revenue CAGR, while growing adjusted EBITDA margin to 28.4 percent in FY'16 from an estimated 26.3 percent for FY'14."

The firm noted that its midpoint valuation equated to 40.2x and 31.4x its respective estimated FY'15 and FY'16 EBITDA.

LinkedIn Corp recently traded at $224.56, up 2.17 percent.