Cantor Fitzgerald Expects LinkedIn's Q4 Report To Show 'Continued Business Momentum'

Youssef Squali of Cantor Fitzgerald on Monday commented in a note that LinkedIn LNKD will post strong fourth quarter results on Thursday and show a continued business momentum. Squali expects the company to report 30 percent to 40 percent growth across all three of its business segments and to guide to a “muted” first quarter 2015 due to foreign exchange headwinds. Specifically, the analyst expects LinkedIn to report revenue of $610.5 million and earn $0.51 per share and an EBITDA of $158.5 million. Squali adds that LinkedIn's core Talent Solutions segment will continue to demonstrate “robust growth” as it continues to benefit from market share gains. Meanwhile, the on-going transition to sponsored updates in the newsfeed will keep growth for Marketing Solutions “in check.” Squali expects member growth to be “robust,” reaching 335.3 million members by ear-end, up 21.1 percent year over year while Premium Subscriptions revenues will grow 31.2 percent year over year to $115.6 million in the fourth quarter (versus 43.5 percent in the third quarter). Bottom line, Squali remains positive on the stock “given the company's differentiated offerings, well established business model, large addressable markets, and nascent but promising opportunity in sales and Marketing Solutions.” Shares are Buy rated with a $255 price target.