Research firm Cantor Fitzgerald has initiated a “hold” rating on Linkedin Corporation (NYSE:LNKD) stock, with a $120 per share price target. In a note to investors, the research firm’s analysts cited the company is becoming one of the most effective online recruiting platforms worldwide.
Analysts also noted that Linkedin Corporation (NYSE:LNKD) has been experiencing fast growth rates in the last few years, and considered the company’s model as “highly disruptive” for the large, fragmented, low technology, and mature recruiting industry.
The research firm said LinkedIn offers solutions to companies for their hiring and marketing needs, which are both large market segments and fragmented.
According to analysts, LindkeIn’s model is highly scalable, and capable of driving substantially higher margins over time, as the company aims to become an integrated platform for large growing businesses in need of continuous talent and marketing solutions. LinkedIn is no longer just a professional network.
In its note to investors, the analysts wrote, “With over 175 million members, Linkedin Corporation (NYSE:LNKD) is the world’s largest professional network, with still ample room for growth given the 640 million professionals worldwide. The combination of virtually 1oo% organic traffic benefitting greatly from the network effect and 100% user-generated content that’s self updating, is a strong differentiator and powerful driver of margins and profits over time.”
In addition, analysts believe that LinkedIn will continue to enjoy a fast growth rate within the next several years. It will hold a leading position in the industry, although it is not a winner-takes-all situation, since HR recruiters and agencies expressed a desire to continue using different sources to recruit the best talents. Recruitments depend on the type of job, industry, level of seniority, and economic cycle. Some of the company’s clients include Chevron Corporation (NYSE:CVX), JPMorgan Chase & Co.(NYSE:JPM), Xerox Corporation (NYSE:XRX), and many other enterprises in different industries.
Tiger Global Management LLC, one of the most successful hedge funds during the previous fiscal year, recently acquired more than 3 million shares of LinkedIn, with a $307,453,085 market value. The hedge fund also acquired almost 2 million shares of Facebook (Nasdaq:FB), worth $39,913,170.
On the other hand, a recent survey from ACSI on customer satisfaction/loyalty for the E-business sector, suggested that Facebook, LinkedIn, and twitter were at the bottom three in the rankings, with 61 points, 63 points, and 64 points respectively. Linkedin Corporation (NYSE:LNKD) improved its homepage design to provide a better user experience.
On Friday, Linkedin Corporation(NYSE:LNKD) is trading above the $120 price target of analysts at Cantor Fitzgerald, at $122.16 per share during the morning trading at the New York Stock Exchange. Shares of the company were down by 0.50 percent from its opening price of $123.45 per share.