Monness, Crespi & Hardt downgraded LinkedIn to neutral from buy, saying that the company’s outlook, which includes headwinds for the company’s hiring business, doesn’t fit with their thesis.The analysts were concerned about the deceleration in Talent Solutions in 2015 and the guidance, which expects a deceleration of about 25% in that segment 2016 in addition to headwinds and the phasing out of the lead accelerator product. Morgan downgraded LinkedIn to neutral from overweight and cut the price target to $186 from $300. Ugh,” the analysts wrote.īut, they added that they believe the stock reaction is “overdone.” “Now Sales Navigator really is LinkedIn’s only big near-term opportunity to materially increase the monetization of its data set. They called exiting Bizo a “gigantic mistake” and said the company will have to spend the rest of the year restoring investor confidence in the company. Pacific Crest analysts cut the company’s price target to $190 from $280 and maintained an overweight rating.The company had acquired Bizo for $175 million in July 2014. “While initial demand was solid, the product required more resources than anticipated to scale,” Steven Sordello, the company’s chief financial officer, said on the call. This move will cost about $50 million in potential revenue in the short-term. In addition to the weak guidance the company provided late Thursday, analysts pointed to Thursday’s earnings call, when the company said that it would phase out its “lead accelerator” product, created out of a recent acquisition, and incorporate the technology into its sponsored content segment.
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