Shares of LinkedIn Corp. rose 1% in premarket trade Friday after Nomura initiated coverage on the stock with a buy rating and $290 12-month price target, which implies a 21% increase from Thursday's closing price. Its stock has risen 33% over the last three months, outperforming the S&P 500's 7% gain. Analyst Anthony DiClemente said LinkedIn has leveraged its user base of roughly 400 million to create new products, such as LinkedIn Recruiter, Lynda and sponsored updates. With hiring revenue accelerating for the first time in five years last quarter and engagement for sponsored updates rising 100% year-to-date, new products have provided the professional social network with new sources of revenue. "We believe valuation upside remains, as LinkedIn underperformed Internet peers in 2015," said DiClemente in a note to clients.
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