Canaccord: LinkedIn Guidance Whiff Is 'Buying Opportunity'

In a report published Friday, Canaccord Genuity analysts maintained a Buy rating on

, while reducing the price target from $300 to $250. LinkedIn reported "modestly positive" Q1 results. The company reduced its revenue guidance for 2015 by ~$40M to reflect a Q1 beat of $18M, currency headwind of $50M, temporary MS & TS impacts of $30M and lynda.com transition (net) of +$20M. In the report Canaccord Genuity noted, "EBITDA guidance was lowered more dramatically on continued heavy sales & product investment. Most factors impacting revenue appear temporary (FX, marketing solutions product transition, Talent Solutions sales force shuffle, lynda.com), while a display revenue headwind seems more secular." The non-GAAP EPS estimates for FY15 and FY16 have been reduced from $2.96 to $1.88 and from $4.35 to $3.27, respectively. "While the stock's expensive valuation leaves no room for speed bumps, we remain convinced of LinkedIn's long-term opportunity. We are encouraged by rapid growth in Sales Solutions, and believe any material weakness in the stock will likely provide a good long-term entry point," the analysts commented.