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Could LinkedIn Stock Hit $275? Bob Peck Thinks So

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In a report published Friday, SunTrust Humphrey Robinson analyst Robert S. Peck maintained a Buy rating on LinkedIn Corp (NYSE: LNKD), while raising the price target from $250 to $275.

"LinkedIn has more than doubled its TAM since its IPO via continued investment in core technology and targeted acquisitions. We believe the various parts create more value together (vs. sum-of-parts) by building a comprehensive B2B marketing platform as part of a broader Professional Ecosystem," Peck stated.

The analyst believes that the company would be able to generate top-line growth of about 33 percent over the next 3-5 years, while expanding its margins. Also, 2H16 is likely to be an inflection point for the company's revenue and EBITDA growth, which is currently being underestimated by the market. The analyst believes that the stock offers an attractive opportunity for long-term investors.

LinkedIn's B2B offering has been transformed with the acquisition of Bizo, given that the combined entity has a member database of more than 365 million. LinkedIn also launched Lead Accelerator in February 2015, in partnership with AppNexus and Marketo, Inc. (NASDAQ: MKTO). The company now offers a comprehensive B2B marketing platform, which "addresses critical challenges faced by marketers across the sales funnel," the SunTrust report said.

In addition, Sales Navigator offers a critical solution for marketers who want to better connect with qualified leads and is expected to generate revenue of close to $500 million in 2017.

"In addition to the upsell potential for both enterprise and individuals, we visualize scenarios where could potentially help with lead generation to supporting the B2B marketing platform," Peck added.

Shares of LinkedIn are up 10 percent over the last five trading sessions.

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