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LinkedIn is down -0.9% to $168.49 in pre-market trading on Monday.
The firm believes that the stock's recent pullback makes it an even more attractive investment and cites potential increased revenue from ads and subscriptions as a major driver for the social media network.
"In our view, the recent stock pullback on growth and margin concerns has created an attractive entry point, with trends set to remain strong driven primarily by share-of-wallet gains in recruitment and better monetisation of mobile traffic," said Atlantic Equities. "With 277 million members the company has a secure position as the leading professional social network, with major revenue opportunities in recruitment, advertising and subscriptions."
Separately, 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 a few notable 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 generally disappointing historical performance in the stock itself, unimpressive growth in net income, disappointing return on equity and premium valuation."