SunTrust's Bob Peck On LinkedIn: Guidance Has 'Core Impacts'

In a report published Friday, SunTrust Robinson Humphrey analysts maintained a Buy rating on

, while reducing the price target from $275 to $250, after the company reported in-line 1Q results, but lower guidance. Although reported its 1Q results in-line with expectations, its guidance for 2Q and the full year was disappointing. "Even FX-adjusted guidance is lower (particularly 2Q), citing weakness in Marketing Solutions (MS) and Talent Solutions (TAS)," the analysts said. Moreover, accounting for the Lynda.com acquisition "complicates the situation." The impacts from Lynda and FX "could be viewed as transitory," the analysts wrote, while adding, "…we believe the impacts from the core TAS and MS segments highlight investor concern over macro headwinds and potential negative impact from the "success" of LinkedIn's product in being a more efficient return on capital (requiring less investment)." "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 though we expect execution to be the primary area of focus in the near term," the analysts added. The EPS estimates for 2015 and 2016 have been reduced from $2.97 to $1.90 and from $3.98 to $3.33, respectively.