SunTrust Sees Strong Growth For LinkedIn

In a report published Friday, SunTrust analyst Robert Peck lowered the price target on LinkedIn LNKD from $260.00 to $225.00 following first quarter 2014 results. Summary of Earnings and Guidance

• LinkedIn reported first quarter EPS of $0.38 versus the estimated $0.34.
• Net loss was $13.4 million for the quarter compared with $22.6 million for the same quarter a year ago.
• Non-GAAP net income was $47.3 million, compared to $52.4 million for the first quarter of 2013.
• Second quarter revenue and adjusted EBITDA is expected to be within $500- $505 million and $118- $120 million, respectively.
• Full year revenue and adjusted EBITDA is expected to be within $2.06- $2.08 billion and $505- $510 million, respectively.

SunTrust Sees Strong Growth for LinkedIn Robert Peck reported that Groupon's future expansion “may be more about wallet share vs. pure customer expansion.” He noted the company's Market Solutions have had a stable +36% revenue over that past four quarters despite the users shift to mobile. SunTrust estimates that traditional display advertising grew approximately 10 percent in the first quarter and sees an “improved” 2H for Sponored Update. The analyst added that Talent Solutions compose another key item. Talent Solutions has provided an approximate 2 percent on customer basis as dollar churn declined modestly year-over-year. Peck remarked that the company continued to push to expand for job listings in 2014, including Bright, which will help 1) expand the member pool (university effort), 2) cement user relationships early, and 3) drive increased engagement.” Shares of LinkedIn closed at $161.22 on Thursday and is currently down one percent shortly after the opening bell.