Jeffrey Silber, an analyst from BMO Capital, maintained the Hold rating on Moody’s (MCO – Research Report). The associated price target was raised to $531.00.
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Jeffrey Silber’s rating is based on a combination of factors that influence Moody’s current and future performance. Although Moody’s reported a solid quarter with better-than-expected guidance for 2025, the company’s growth is primarily driven by its core debt ratings business. This segment, while expanding, is expected to see a deceleration in debt issuance trends, which could potentially affect the stock’s trajectory.
In addition to this, Moody’s Analytics division has shown strong performance, but there are challenges due to clients tightening their purchasing behaviors. Despite these concerns, the valuation of Moody’s stock is considered justified at its current level, leading to Silber’s Hold rating. The restructuring efforts and efficiency programs announced by Moody’s are expected to yield cost savings and support medium-term growth targets, which are positive developments for the company.
In another report released today, UBS also maintained a Hold rating on the stock with a $540.00 price target.
MCO’s price has also changed moderately for the past six months – from $466.150 to $522.840, which is a 12.16% increase.