Barclays raised its price target for LinkedIn today to $125 from $93, maintaining an overweight rating after LinkedIn delivered yet another beat on the top and bottom lines on Thursday.
The potential upside for LinkedIn is huge, too:
- Barclays predicts that LinkedIn can achieve margins that are 2 times its current levels.
- It's forecasting nearly $2 billion in revenue in 2014, along with $600 million in EBITDA.
Here's the money quote from the new note:
While the valuation is well above average on near-term earnings, so are LinkedIn’s growth and long-term margin potential, in our view. We believe LinkedIn can sustain significant growth and achieve margins that are as much as 2x current levels over time, and our upside case forecasts the company generating nearly $2bn in revenue and $600mn in EBITDA by 2014.
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