Goldman: Tableau's Next Act 'Critical,' LinkedIn Still A Buy

• Shares of LinkedIn Corp LNKD and Tableau Software Inc DATA have lost more than 13 percent since January 4.
• Goldman Sachs analysts maintained the ratings for both companies, while reducing their price targets.
• LinkedIn is poised to benefit from accelerating user growth and monetization, while Tableau's investments in new products may restrict near-term upside, the analysts believe.

LinkedIn

Analyst Heath P Terry maintained a Buy rating for the company, while reducing the price target from $280 to $200.

LinkedIn reported its 4Q15 revenues ahead of expectations and guidance. The company has guided to FY16 revenues and adjusted EPS of $3.60-$3.65 billion and of $950-$975 million, respectively. The lower-than-expected guidance is attributable to macro concerns in APAC and EMEA, along with the company’s decision to sell off Bizo.

“Given those macro concerns and LinkedIn’s recent execution issues, we expect investors will demand financial outperformance before there is meaningful recovery in LNKD’s multiple,” Terry mentioned.

The analyst believes that LinkedIn and its network are among the most valuable assets in the Internet and have significant potential for accelerating user growth and monetization.

Tableau Software

Analyst Jesse Hulsing maintained a Neutral rating on Tableau Software, while reducing the price target from $99 to $61.

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