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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