Why LinkedIn (LNKD) Was Upgraded Today

Story updated at 10:05 a.m. to reflect market activity.

NEW YORK (TheStreet) -- LinkedIn (LNKD) was upgraded to "outperform" from "sector perform" by RBC Capital Wednesday.

LinkedIn gained 2.3% to $214.57 in morning trading.

The analyst firm raised its price target for the social network company to $250 from $225. Analyst Mark Mahaney said the upgrade is a value call as the company's stock fell 13%over the past six months.

"Over the past 6 months LNKD shares have traded down 13% vs. a 12% increase in the S&P 500. Drag Issues have included: 1) overly aggressive Street estimates, 2) a heavier than expected investment outlook for '14, 3) a greater-than-expected slowdown in Talent Solutions revenue growth, and 4) uncertainty over Marketing Solutions format changes," Mahaney wrote.

"The first issue has been addressed - Street '14 EBITDA estimates have been reduced 11% since the beginning of this year. And we believe LNKD's '14 investments - salesforce buildouts, product and market expansions, and acquisitions - are coming from a position of strength against large TAMs. Our very recent proprietary work helps address Drag Issues 3 & 4."

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Seperately, TheStreet Ratings team rates LINKEDIN CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate LINKEDIN CORP (LNKD) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and disappointing return on equity."

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