Citi's Mahaney: Monster Is Fully Valued

| About: Monster Worldwide, (MWW)
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Citigroup’s Mark Mahaney on Friday downgraded shares of Monster Worldwide (NASDAQ:MNST) to Hold from Buy, largely based on valuation.

“MNST has moved within 2% of our $48 [price target],” he wrote. “Accordingly, we believe the risk-reward is now less compelling. We continue to view MNST as a core holding in the ‘Net sector, but we would prefer an entry/adding price closer to $40, which implies 20% upside…So we are downgrading…”

His thesis on the stock has not changed: He still sees help-wanted ads migrating online, a good EPS growth story for Monster, an attractive new opportunity for the company in Internet advertising and a catalyst for the stock in the resolution of its ongoing stock-options issue.

But he thinks the stock is high enough. Give him credit for sticking to his guns, and not simply raising his price target.