LinkedIn Jumps After Banks Predict Stock Gains

LinkedIn Corp., the biggest professional-networking website, jumped 11 percent in New York trading after Bank of America Corp., JPMorgan Chase & Co., Morgan Stanley and UBS AG began coverage of the stock.

LinkedIn rose $8.31 to $84.69 at 2:27 p.m. in New York Stock Exchange composite trading. The stock climbed as high as $86.50 earlier in the session.

The company’s initial public offering last month helped open the floodgates to a wave of technology IPOs, making for the biggest year in new Internet stocks since the dot-com bubble burst in 2000. LinkedIn’s large membership and fast growth make it an attractive company, Brian Pitz, a New York-based analyst at UBS, said today in a research note.

“LinkedIn could transform the hiring industry through viral growth of its already massive, socially connected platform,” Pitz wrote. “The size and attractive demographics of the users are a primary, fundamental competitive advantage for the company and it represents a significant barrier to entry for the competition.”

LinkedIn’s top underwriters -- Bank of America, JPMorgan and Morgan Stanley -- all initiated coverage of the stock with positive ratings today.

JPMorgan predicts that the shares will climb to $85 in the next 18 months, while Bank of America has a price target of $92. Morgan Stanley projects $88. UBS, which also assigned a “buy” rating, expects the stock to increase to $90.

Today’s gains add to the stock’s 9.2 percent jump yesterday, marking the biggest two-day increase since the week of its debut.

To contact the reporter on this story: Zachary Tracer in New York at

To contact the editor responsible for this story: Nick Turner at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.