ST Robinson Humphrey upgraded Monster Worldwide (MNST ) to overweight from underweight.
Analyst Mark Allen says improvement in the U.S. economy is likely to boost demand for job advertising through an increase in new positions and in the number of open positions generated by employee turnover. He thinks more jobs and higher turnover could potentially create revenue opportunities.
Allen says Monster appears very scalable on revenue. He notes from 1999 to 2000, the last period of rising revenue, Monster unit's operating profit margin grew from 5%, to 24%. He thinks a recent price pullback presents an attractive entry point for investors.
Allen raised the 50 cents 2004 earnings per share estimate to 57 cents, and set a 80 cents 2005 earnings per share estimate.