We have recently upgraded our recommendation on Monster
Worldwide Inc. (MWW) to Outperform from Neutral.
Headquartered in New York, Monster Worldwide Inc. is an online
recruitment firm of Monster.com, the leading career website in the
world.
Although the company's global business continues to remain weak
and uncertain, management continues to focus on new product
additions. This resulted in strong bookings in North America in the
second quarter of 2012, which partially compensated for the
weakness in Europe and Asia.
The new search technology by Monster - 6Sense - continues to
gain traction and should drive business in the coming months.
Monster also continues to focus on its new offering - Power Resume.
Earlier, Monster launched BeKnown, a professional networking
application that is designed to allow Facebook users to establish a
professional network on one of the world's most popular social
platforms.
Monster is also considering strategic alternatives to boost
shareholder value in the coming months. The near-term priorities
for the company include executing on its share buyback program and
return excess cash to shareholders, focusing on incremental growth
opportunity with SeeMore and Government Solutions and spend $100
million to enhance marketing campaign and sales efforts.
Nevertheless, the company reported in-line results in the second
quarter of 2012 and management continues to revamp its product
portfolio to combat the existing slowdown.
However, earnings estimates for Monster have gone down over the
last few days. The current Zacks Consensus Estimate for 2012 is 20
cents, down by 8 cents in the last few days as nine out of the ten
analysts covering the stock reduced their estimates.
The macroeconomic outlook remains uncertain. The slowdown in
Europe has taken a toll on the company's business with no
improvement expected in the near term. Asia also continues to be
weak.
We believe the shares have already hit an all-time low and
expect a gradual recovery hereafter. Hence, we upgrade our
recommendation to Outperform from Neutral.
We have recently upgraded our recommendation on
Monster Worldwide Inc.
(
MWW
) to Outperform from Neutral.
Headquartered in New York, Monster Worldwide Inc. is an online
recruitment firm of Monster.com, the leading career website in
the world.
Although the company's global business continues to remain
weak and uncertain, management continues to focus on new product
additions. This resulted in strong bookings in North America in
the second quarter of 2012, which partially compensated for the
weakness in Europe and Asia.
The new search technology by Monster - 6Sense - continues to
gain traction and should drive business in the coming months.
Monster also continues to focus on its new offering - Power
Resume. Earlier, Monster launched BeKnown, a professional
networking application that is designed to allow Facebook users
to establish a professional network on one of the world's most
popular social platforms.
Monster is also considering strategic alternatives to boost
shareholder value in the coming months. The near-term priorities
for the company include executing on its share buyback program
and return excess cash to shareholders, focusing on incremental
growth opportunity with SeeMore and Government Solutions and
spend $100 million to enhance marketing campaign and sales
efforts.
Nevertheless, the company reported in-line results in the
second quarter of 2012 and management continues to revamp its
product portfolio to combat the existing slowdown.
However, earnings estimates for Monster have gone down over
the last few days. The current Zacks Consensus Estimate for 2012
is 20 cents, down by 8 cents in the last few days as nine out of
the ten analysts covering the stock reduced their
estimates.
The macroeconomic outlook remains uncertain. The slowdown in
Europe has taken a toll on the company's business with no
improvement expected in the near term. Asia also continues to be
weak.
We believe the shares have already hit an all-time low and
expect a gradual recovery hereafter.
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