Credit Suisse On LinkedIn: 'Don't Throw The Baby Out With The Bathwater'

In a report published Friday, analysts at Credit Suisse maintained their Outperform rating on LinkedIn Corp LNKD, while lowering the price target from $331 to $307. The company reported its 1Q15 revenues significantly ahead of the guidance and the estimates LinkedIn's revenue grew 34.8 percent, year-on-year, in 1Q15, mostly driven by Talent Solutions. The company has, however, revised its FY15 guidance downward. According to the analysts, the lower guidance was due to FX headwinds, LinkedIn's sales force reorganization and poor performance in Displays, as well as Lynda. According to Credit Suisse, "three out of four factors are ultimately transitory while the deterioration of LinkedIn's premium display business is not an unfixable problem." Growth drivers and the company's fundamentals also remain unchanged. The analysts have accordingly revised their FY2015 estimates for the company, while leaving the 2016 estimates unchanged.