SunTrust's Bob Peck Expecting 'Solid' Q3 Results Out Of LinkedIn

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  • LinkedIn Corp LNKD are down 10 percent year-to-date, after hitting a high of $270.76 on February 26.
  • SunTrust Robinson Humphrey’s Robert S. Peck maintained a Buy rating on the company, with a price target of $275.
  • The company is likely to post robust 3Q results, and momentum appears to be building for 2016, Peck said.

Analyst Robert Peck expects LinkedIn to ports its 3Q results in-line with or ahead of the Street expectations. He added that the company has “multiple drivers that are building momentum for growth in 2016,” enumerating them as:

  1. Talent Solutions and Lynda product improvements and integration
  2. Mobile growth and new app and product features
  3. Sales force expansion for multiple products
  4. New products/features from Talent Connect conference
  5. Sales Navigator and Lead Accelerator continued market education and penetration

Peck mentioned that investors would be focused on guidance, which has been complicated due to “multiple moving parts” like FX, the Lynda acquisition and core weakness. Moreover, guidance has been below expectations in each of the last couple of quarters.

“Execution will be key near term and we believe the negative impact of Display and sales force transitions are manageable,” Peck commented, while adding, “LinkedIn’s ability to innovate and address its expanding TAM ($115B vs. $50B at IPO) outweigh the risks, in our view.”

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Posted In: Analyst ColorLong IdeasReiterationAnalyst RatingsTrading IdeasRobert S. PeckSunTrust Robinson Humphrey
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