Bob Peck: Look Forward To LinkedIn's Second Half

• The share price of LinkedIn Corp LNKD has declined 16.16 percent over the past one month, falling to a low of $184.065 on January 20.
• Robert S. Peck of SunTrust Robinson Humphrey has maintained a Buy rating on the company, while lowering the price target from $280 to $250.
• Peck believes that the company’s ability to innovate and address its expanding TAM outweigh the risks, and that positive momentum is likely to build for LinkedIn in 2H2016.

Analyst Robert Peck expects the company to report its revenues and EBITDA for 4Q15 in-line with to above the consensus, although investors are likely to focus on the guidance for 1Q16/2016.

“Execution is key in the near-term, with investors looking for consolidation post sales force transition and traction for new products to offset declines in Display,” Peck noted.

Peck sees multiple drives that are helping to build growth momentum in 2016, including product improvements and integration in Talent Solutions and Lynda, mobile growth with new product and app features, sales force expansion, new products/features following the Talent Connect conference and continued market education and penetration by Lead Accelerator and Sales Navigator.

For TAS, Peck expects LinkedIn’s focus to be on “1) continued progress following the sales force reorganization in 1Q, 2) new product launches, and 3) traction for Lynda,” while for Marketing Solutions, the company is likely to focus on Display, Sponsored Updates and Lead Accelerator.

The key items to watch for Premium Subscriptions include Sales Navigator, user engagement following the launch of the mobile app and China update, which is likely to be a key user growth driver. Peck also recommends watching for traction for Lynda.