Bob Peck Still Likes LinkedIn's Innovation: Here's Why He Projects $275

In a report published Friday, SunTrust Robinson Humphrey analyst Robert S. Peck maintained a Buy rating on LinkedIn Corp (NYSE: LNKD), with a price target of $275.LinkedIn reported robust 2Q results, with mobile traffic growing two times the rate of overall activity to stand at nearly 52 percent of the total traffic. The company's sponsored updates "grew ~2x YoY and is ~50% of MS revs" while the Core MS grew 32 percent YoY despite display weakness, analyst Robert Peck said.LinkedIn reported overall member growth of 21 percent to 380 million, with China surpassing the 10 million member mark.In the report SunTrust noted that early traction at Lynda.com was a positive feature as it contributed $18M in 2Q, as compared to the $3M estimate. LinkedIn's display segment was down 30 percent YoY in 2Q, versus a 10 percent decline in 1Q. "The impact to revenues is minor (~3% of total revs) but greater on EBITDA as contribution margins are high."LinkedIn's FY15 guidance, excluding the impact of Lynda.com, indicates a lower outlook for core revenues and EBITDA, Peck commented."While the negative impact of Display is more secular, we believe the exit rate for 2015 and LinkedIn's ability to continue to innovate and address its expanding TAM (now $115B vs. $50B at IPO) are positives for investors that outweigh the risks in the longer term though we expect execution to continue to be the primary area of focus in the near term," Peck added.