UPDATE: FBR Capital Markets Initiates Coverage on Monster Worldwide as Deep Value Compensates for Challenges

In a report published Thursday, FBR Capital Markets analyst William Bird initiated coverage on

with an Outperform rating and $7.00 price target. In the report, FBR Capital Markets noted, “Monster Worldwide, Inc. (MWW) is an investment in a job recovery and more value-enhancing strategic initiatives, together amplified by greater buybacks. MWW's low valuation suggests that expectations are very low, taking a good deal of the risk out of the investment, in our opinion. Monster has gone into motion on buybacks (11% share shrink year to date) just as conditions in North America appear to be improving. We believe that MWW's FCF profile and share shrink potential are mispriced: MWW is capable of 60% share shrink over the next three years from FCF and the recent monetization of Jobs Korea. Free call potential includes improvement in Europe, success with new products, greater use of the balance sheet, and potential value-enhancing strategic adjustments.” Monster Worldwide closed on Wednesday at $5.54.