Morgan Stanley Reiterates Underweight, Raises PT On 51job On Solid 4Q14 Results

In a report published Monday, Morgan Stanley analyst George Meng reiterated an Underweight rating on

, and raised the price target from $34.80 to $35.00. In the report, Morgan Stanley noted, "Our UW rating mainly reflects our relative preference for other stocks in the industry. We remain positive about 51job's market position and the outlook for China's online recruiting market. We believe 51job, a leading online recruitment player in China with a ~40% market share, will continue to benefit from the expansion of this market in China, though weak pricing power caps further margin improvement. Its penetration into other HR services (i.e., outsourcing and training) should lead to further upside, as <3% of 51job's online customers have purchased other HR services, implying cross-selling opportunities. But the regulation change in Dispatch Labor brings uncertainty." 51job closed on Friday at $35.25.