Deutsche Bank Downgrades Monster Worldwide (MWW) to Sell
MWW Hot Sheet
Rating Summary:6 Buy, 4 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 16 | Down: 7 | New: 23
Deutsche Bank downgrades Monster Worldwide (NYSE: MWW) from Hold to Sell.
Deutsche analyst says, "We are lowering our investment rating on shares of Monster Worldwide from Hold, for several reasons: demanding earnings multiple on 2011 GAAP EPS, lower operating margin trends for some time now, lowered revs/earnings outlook for 2010 and limited evidence in improving business trends. Monster’s sales activity dropped 46% vs. 4Q 2007 levels (vs. -49% in the first three qtrs. vs. 2007 levels), suggesting little improvement outside of seasonal effects...While 4Q results were in line with estimates, we think 2010 represents another transition year for Monster even though the shares embed a robust recovery. Although growth may resume by year-end, we think the market is discounting $0.85-$1.00 in peak EPS (assuming a market multiple), which may take into 2013 or 2014 to achieve. With a modest recovery in unemployment, a lower margin profile vs. years past and a lag effect on revs vs. the industry, we think earnings growth may not be as robust as the market expects...We are now forecasting EPS of -$0.15 in 1Q (-$0.03 previously) and -$0.22 for 2010 ($0.12 previously)."
"Our $11 price target values shares of Monster at just over 30x our ‘11E EPS estimate of $0.33 (previously 22x our 2010 EPS estimate of $0.54), in-line with the internet media peer group, and nearly 6x ’11 EBITDA of $195mn, which is appropriate given the uncertainties around the timing of the eventual turnaround in business fundamentals and earnings power."
To see all the upgrades/downgrades on shares of MWW, visit our Analyst Ratings page.
Deutsche analyst says, "We are lowering our investment rating on shares of Monster Worldwide from Hold, for several reasons: demanding earnings multiple on 2011 GAAP EPS, lower operating margin trends for some time now, lowered revs/earnings outlook for 2010 and limited evidence in improving business trends. Monster’s sales activity dropped 46% vs. 4Q 2007 levels (vs. -49% in the first three qtrs. vs. 2007 levels), suggesting little improvement outside of seasonal effects...While 4Q results were in line with estimates, we think 2010 represents another transition year for Monster even though the shares embed a robust recovery. Although growth may resume by year-end, we think the market is discounting $0.85-$1.00 in peak EPS (assuming a market multiple), which may take into 2013 or 2014 to achieve. With a modest recovery in unemployment, a lower margin profile vs. years past and a lag effect on revs vs. the industry, we think earnings growth may not be as robust as the market expects...We are now forecasting EPS of -$0.15 in 1Q (-$0.03 previously) and -$0.22 for 2010 ($0.12 previously)."
"Our $11 price target values shares of Monster at just over 30x our ‘11E EPS estimate of $0.33 (previously 22x our 2010 EPS estimate of $0.54), in-line with the internet media peer group, and nearly 6x ’11 EBITDA of $195mn, which is appropriate given the uncertainties around the timing of the eventual turnaround in business fundamentals and earnings power."
To see all the upgrades/downgrades on shares of MWW, visit our Analyst Ratings page.
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