In a report published this morning, Pacific Crest analyst Evan Wilson broke down why he believes the career-oriented social media company LinkedIn Corp LNKD is poised to dominate B2B targeting.
At the beginning of the report, he gave LinkedIn an outperform rating and raised his price target from $275 to $295.
Regarding his confidence in the stock, Wilson lists four marketing solutions provided from LinkedIn's new suite of product:
- Sponsored updates
- Sponsored inMail
- Network display
- Lead accelerator
These last two products provide ad network revenue, which LinkedIn was initially not considering as of last year. Wilson sees LinkedIn's competitive advantage of unique scalable data combined with this new marketing suite as a big, yet underestimated opportunity.
Just like an online resume, these factors look good on paper, but there are still limitations to the LinkedIn's current structure, such as:
- Foreign factors including overseas growth and economic conditions
- Competition in talent solutions space
- Lacks feasible dynamic opportunities outside of current industry
"We think LinkedIn's Talent Solutions business will be its biggest growth driver as it continues to prove to customers that LinkedIn Recruiter saves both time and money versus traditional recruiting alternatives," Wilson added.
Shares of LinkedIn traded down 0.27 percent on Tuesday.
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