LinkedIn Corp. (NYSE:LNKD) head of marketing solutions, Penry Price, along with the Investor Relations team met with BMO Capital analysts Jeffrey Silber and Daniel Salmon in a recently held meeting. The company provided insights regarding B2B marketing strategies and discussed the opportunity with the prospects of tens of millions of dollars.
LinkedIn, during the earnings call for the last quarter, pointed out several changes that could be made in the future, and Mr. Price used the opportunity to address the concerns regarding the plans associated with the mentioned changes and what route the company is going to take regarding the proposed changes, given the upper management decides to go through. He also discussed details regarding the future course of action of his department.
LinkedIn, during the earnings call announced to make its inventory available to programmatic demand sources and will be sold on open auctions as well as private deals basis. In a bid to filter audiences and target appropriate ads towards appropriate audiences, LinkedIn announced an “account based targeting” project couple of weeks ago which will be similar in working to projects such as Google’s Customer Match, Twitter’s Tailored Audience and Facebook’s Custom Audiences. With the current API, it will enable advertisers to target up to 30,000 people accounts in a much more efficient manner.
Given the new additions to the LinkedIn’s advertisement arsenal, B2B presents huge potential with 8 digit revenue upside. The management expects improvements in the newly installed system come 2016, with enhanced audience targeting features, user experience improvement and efficient data mining tactics. The ad pricing might also see a change as the company might opt for a more object driven approach.
BMO Capital maintained the Market Perform rating on the stock following the meet but reduced the price target significantly to $130 from $150 on the grounds that B2B plans and earnings inflection details were not disclosed. The stock has 10 Strong Buy ratings, 18 Buy ratings, 15 Hold ratings and one Underperform rating to combine for a tally of 44 analyst ratings. It is currently trading at $117.91 and has been oscillating around the price for a while.