In a report released yesterday, Jeffrey Silber from BMO Capital maintained a Hold rating on Moody’s, with a price target of $534.00.
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Jeffrey Silber’s rating is based on a combination of factors influencing Moody’s current market position. The recent resignation of Stephen Tulenko, the President of Moody’s Analytics, introduces a level of uncertainty, despite the company being in capable hands with Andy Frepp as Interim President. While there are no immediate concerns about the company’s operations, the transition could put some pressure on the stock as Tulenko was a respected figure in the industry.
Additionally, Moody’s has diversified its business beyond its core debt ratings, but the company’s stock performance is still heavily influenced by debt issuance trends. With expectations of a slowdown in debt issuance, this could negatively impact the stock’s trajectory. Although Moody’s Analytics has shown strong performance, there are emerging challenges as clients become more cautious with their spending. Given these factors, Silber believes that Moody’s current valuation is appropriate, leading to a Hold rating.
MCO’s price has also changed slightly for the past six months – from $500.280 to $509.470, which is a 1.84% increase.