Wednesday, December 5, 2012

Monster Worldwide: Goldman Downgrades To Sell; Stock Slips

Monster Worldwide (MWW) shares are trading lower this morning after Goldman Sachs analyst Ingrid Chung cut her rating on the shares to Sell from Neutral, with a new target price of $14, down from $18.

She cites three reasons for the downgrade of the online classified ads site:

  • “Structural risk, as we believe that pricing for classified recruitment ads will never fully recover from the contractions brought on by the recent recession, as newer, cheaper alternatives proliferate.”
  • “Execution risk, as MWW has steadily lost share to competitors” including CareerBuilder and social networking sites.
  • Rich valuation.

“We believe MWW shares already discount a recovery and are more than fully valued,” she writes.

MWW this morning is down 42 cents, or 2.5%, to $16.48.

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