Fundamental analysis, page-5

Major competitor, LinkedIn was beaten down over last year, but started recovering.
Goldman Sachs analyst is bullish on LinkedIn and cheaper valuation raises takeover potential.

1PG, E/V of $143m, could raise takeover potential as well.
I read an article of speculating LinkedIn to bid for 1PG sometimes ago.


Opinion: 4 beaten-down Internet companies that are takeover targets

By Michael Brush
Published: Mar 18, 2016 11:11 a.m. ET


LinkedIn: Cheaper valuation raises buyout potential
LinkedIn shares were hammered in February when results got hit by sluggish ad revenue and mobile growth, ho-hum performance of its Sales Navigator sales-lead generator, and weakness in Europe and Asia.

The stock fell to around $115 today from above $200. This huge hit improved valuation considerably. LinkedIn now trades for the sector multiple, despite expected superior growth. This ups the odds of a takeover, say Goldman Sachs analysts. The analysts increased takeover potential to two from three, on a scale of one to four.

“We believe the decline in LinkedIn’s multiple and enterprise value could make it a more attractive acquisition target,” says Terry, the Goldman analyst covering the stock.

One obstacle: LinkedIn has a dual-share-class structure, which concentrates voting power. But even without a takeover, LinkedIn could do well, given the company’s big network of users and how much they like the site — plus all the valuable user information this provides. Terry has a $155 price target.

http://www.marketwatch.com/story/4-...ompanies-that-are-takeover-targets-2016-03-17