With Monster?s current market price now close to our fair value estimate, we think the company must tackle some key challenges for continued meaningful appreciation in its stock price. Most importantly, we believe rising competition will continue a play a spoilsport role for Monster in the coming future, as social networking sites such as LinkedIn and niche recruiting websites could continue to eat into Monster?s market share. Moreover, the top-line growth will need to increase meaningfully, in both North America as well as international markets, to realize gains from operating leverage and thereby achieve higher profitability.
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