NEW YORK (TheStreet) -- After LinkedIn announced that it would deliver ads to other websites, research firm Pacific Crest wrote that the initiative is a huge, underestimated opportunity for the company. BACKGROUND: Last month, LinkedIn announced that it would launch a global display ad network. The network will deliver advertisements to LinkedIn and 2,500 other websites focused on business. The ads will be based on LinkedIn's data. ANALYST REACTION: In a note to investors earlier today, Pacific Crest analyst Evan Wilson wrote that the market is underestimating the opportunity created by the ad network. Linkedin's large amount of data leaves it well-positioned to "dominate" online business-to-business targeted ads, the analyst believes. Wilson now expects Linkedin's Marketing Solutions unit to grow at a 30% rate next year, up from his previous estimate of a 21% increase. The analyst increased his price target on LinkedIn to $295 from $275 and keeps an Outperform rating on the shares. WHAT'S NOTABLE: Morgan Stanley on February 25 initiated coverage of LinkedIn with an Overweight rating, saying that the company was poised to "become the Facebook of professional advertising." The firm set a $310 price target on the shares. PRICE ACTION: In early trading, LinkedIn fell 1.4% to $263.50. Reporting by Larry Ramer.
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