Canaccord Genuity Morning Coffee on Monster Worldwide (MWW): Is There A Suitor For A Monster?
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Price: $3.41 --0%
Rating Summary:
4 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
4 Buy, 7 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity Morning Coffee on Monster Worldwide (NYSE: MWW): Is there a suitor for a Monster?
Shares of Monster Worldwide were trading higher on Tuesday after the company confirmed it has hired advisors to conduct a strategic review of the company, which may lead to its sale. The announcement comes nearly a week after CEO Sal Iannuzzi said that management and the board were pursuing “strategic alternatives to increasing shareholder value.” A press release late Monday confirmed that Stone Key Partners LLC and Merrill Lynch have been brought on to help look at alternatives. Credit Suisse believes the company has enough attractive characteristics, such as high free cash flow generation, solid EBITDA margins and relatively low capital requirements to be a buyout candidate, although they note that its unstable top-line growth, given the cyclical nature of the business, could potentially limit interest. Using their current estimates, they believe 15-20% returns at exit are achievable. The also believe a strategic asset sale could be a possibility, specifically citing its Korea business, which they believe could generate $0.84-1.18 per share if sold.
Note - shares are currently trading at $8.25, down $0.07 (-0.84%)
Shares of Monster Worldwide were trading higher on Tuesday after the company confirmed it has hired advisors to conduct a strategic review of the company, which may lead to its sale. The announcement comes nearly a week after CEO Sal Iannuzzi said that management and the board were pursuing “strategic alternatives to increasing shareholder value.” A press release late Monday confirmed that Stone Key Partners LLC and Merrill Lynch have been brought on to help look at alternatives. Credit Suisse believes the company has enough attractive characteristics, such as high free cash flow generation, solid EBITDA margins and relatively low capital requirements to be a buyout candidate, although they note that its unstable top-line growth, given the cyclical nature of the business, could potentially limit interest. Using their current estimates, they believe 15-20% returns at exit are achievable. The also believe a strategic asset sale could be a possibility, specifically citing its Korea business, which they believe could generate $0.84-1.18 per share if sold.
Note - shares are currently trading at $8.25, down $0.07 (-0.84%)
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