LinkedIn Corp (NYSE:LNKD) received a shot in the arm Thursday in the form of an analyst upgrade to buy, and heaven knows LNKD stock could use it.
LinkedIn stock has been steadily gaining ground since a wipeout of a selloff four months ago, and the latest positive analyst note helps rebuild the bull case.
Indeed, LNKD shares are now up 25% since a brutal February swoon thanks to a steady stream of more optimistic Wall Street commentary.
Be that as it may, LinkedIn stock is still down about 37% for the year-to-date.
LNKD Stock Offers Value and Growth
RBC Capital analyst Mark Mahaney raised his view on LNKD stock to “outperform” (buy, essentially) from “sector perform” (hold). Part of Mahaney’s case on LinkedIn stems from its awful YTD run, which has made the valuation “reasonably attractive.”
More convincingly, the analyst says RBC Capital’s 4th Online Recruitment Survey confirmed “LinkedIn’s value proposition and strong competitive positioning.” Nearly half of survey respondents said they have an intention to raise spending over the next 12 months.
Furthermore, LinkedIn scored the highest marks for satisfaction in the survey, as 78% of respondents saying that they were “completely,” “extremely” or “very” satisfied.
In other words, the revenue picture at LNKD is looking up and the valuation looks pretty good.
With a target price of $160, the analyst sees implied upside of more than 15% in the next 12 months or so.
As of this writing, Dan Burrows did not hold a position in any of the aforementioned securities.
