JPMorgan Reiterates Overweight On LinkedIn, Sees 'High Quality Growth Story'

In a report published Wednesday, JPMorgan analyst Doug Anmuth maintained an Overweight rating on

, with a price target of $300. LinkedIn guided to 20 percent lower EBITDA in 2015. Factors leading to this guidance are "more short-term & fixable than they are long term & fundamental," analyst Doug Anmuth mentioned. LinkedIn's sales force realignment in 1Q is aimed at positioning the company for future growth. LinkedIn's net ratio appears to be improving in 2Q. In the report JPMorgan noted, "We are confident that the salesforce change impact will be limited going forward as trends are improving through the quarter and the realignment better positions LNKD long-term." "Management's communication around the sales force changes & Lynda accounting impact was lacking, but we believe it has helped create an attractive opportunity at current levels based on continued strong Talent growth (we think 30%+ this year), Marketing product enhancements (Bizo & sponsored content), & major opportunities in emerging businesses in Lynda.com & Sales Navigator," Anmuth commented. Lynda.com represents a strategic asset with significant up-sell and cross sell opportunities. "We remain optimistic on Lynda.com's potential over time, specifically the expected leverage from distributing Lynda's quality content across LNKD's enterprise reach (~35k enterprise clients)," the report said. The industry wide weakness in display, especially in Europe, is expected to have a muted impact over time. The EPS estimates for FY15 and FY16 have been reduced from $1.79 to $1.75 and from $5.36 to $4.64, respectively.