Analysts: LinkedIn's Q4 Outlook 'Conservative'

LinkedIn Corp (NYSE: LNKD) defied the jinx haunting social media companies this week with a rising share price Friday even after its fourth-quarter outlook missed expectations.

Facebook Inc (NASDAQ: FB) and Twitter Inc (NYSE: TWTR) each suffered sell-offs earlier in the week on growth concerns.

But LinkedIn gained more than 12 percent Friday, perhaps on the strength of its membership growth in the recent quarter of 28 percent.

Although its fourth-quarter outlook was below the consensus, the company boosted its full-year estimate on the strength of the recent period.

"The market is likely to shrug it off," FBR's William Bird said in a note maintaining a Neutral rating on the shares and $180 target.

Although fourth-quarter results will be hurt by promotional free trials for premium subscriptions, the strategy could succeed in the longer term by snagging more recurring customers, Bird said.

SunTrust's Robert S. Peck noted the company's history of low-balling its outlooks and said the recent guidance is "likely to be conservative."

Peck maintained a Buy rating and $240 price target, suggesting the company's recent $175 million acquisition of business-to-business social media company Bizo offers "huge potential" in accessing what he called a $40 billion market.

Peck also praised the company's recent move into China, which he said generated three-quarters of Linkedin's third-quarter revenue growth.

Linkedin agreed amid some controversy in February to include censorship filters in China.

Wunderlich's Blake T. Harper said the company's fourth-quarter outlook "will prove conservative again" and that the company "should be able to post enough upside."

Harper liked news that Linkedin's recruitment segment Talent Solutions business grew at 45 percent in the recent period, while its sales-lead generator Sales Navigator landed its first large contract, with SAP SE.

Sales Navigator will help the company "continue to beat and raise," according to Harper, who maintained a Buy rating and $250 target.