NEW YORK (Reuters) - Shares of professional networking service LinkedIn Corp LNKD.N rose more than 8 percent on Wednesday after Goldman Sachs upgraded the stock to a “buy” rating, citing factors such as strong demand for its hiring-related services.
LinkedIn shares rose $7.66 to $99.50 on the New York Stock Exchange after Goldman also raised its 12-month price target for the stock to $135 from $80.
Goldman analyst Heath Terry said in a research note that there was a “high perceived value” of LinkedIn services among recruiters.
LinkedIn is also one of the companies best positioned to benefit from an increase in mobile usage because of its reliance on subscriptions over advertising, Goldman said.
“We believe this will be a key factor in driving outperformance in the sector over the next few years,” Terry said.
Reporting By Sinead Carew; Editing by Gerald E. McCormick