Analyst John Janedis downgraded Monster, which operates job Web site Monster.com, to "Market Perform" from "Outperform."

Janedis said his downgrade is based on a sluggish domestic economy, slower recruitment advertising, and turnover in Monster's sales department.

Janedis noticed more openings in senior level sales positions in important markets, and he wondered if this could hurt sales in its North American careers unit if the positions remain vacant for long.

"While macro concerns have increased, we now believe incremental competition and sales force-related execution issues will have a greater negative impact than we previously expected in North America," Janedis wrote in a client note.

On the positive side, Janedis said lower expenses should help offset weakness in sales and margins.

Janedis also remained upbeat on the company's international business, which is still growing rapidly, but noted slower macro growth in parts of Europe.

"While solid, we note postings appear to be slowing somewhat in the Netherlands, U.K. and France," Janedis wrote.

Janedis said the company is still a nice target for a buyout, but he does not think a deal is imminent.