Deutsche Bank Reiterates a 'Hold' Rating on Monster Worldwide (MNST)

January 7, 2009 7:52 AM EST

Deutsche Bank reiterates a 'Hold' rating on Monster Worldwide (Nasdaq: MNST), lowers price target from $11 to $10.

Deutsche analyst says, "Our lowered PT is based on continued US postings declines, and now a decline in international markets. We think the severity of the revenue decline may force management to rationalize/reduce headcount and operating expenses in order to preserve profit levels. While the recruitment industry may be 4-8 quarters away from bottoming, we still think it's too early to re-assess and apply a trough multiple to the Monster story...Our analysis of Monster job postings would suggest that US postings fell 43% Y/Y in December and 4Q, far worse than expected. Thus far in early Jan., postings are off 50%-55% Y/Y, implying recruiting trends have not stabilized. In Europe, the Monster Employment Index (MEI) is now declining at a 3% rate, thereby impact international growth for Monster."

Monster Worldwide, Inc. (Monster Worldwide) provides a global online employment solution, Monster.

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