Analyst Jeffrey Silber of BMO Capital maintained a Hold rating on Moody’s (MCO – Research Report), retaining the price target of $531.00.
Jeffrey Silber has given his Hold rating due to a combination of factors impacting Moody’s stock. The company’s core business in debt ratings, Moody’s Investor Services (MIS), is influenced by fluctuating debt issuance trends. Although there was a rebound in issuance in 2023 and 2024, future growth is expected to be modest, with management guiding to low single-digit growth in 2025. This potential slowdown in debt issuance could affect the stock’s performance.
Additionally, while Moody’s Analytics has shown strong performance, it faces challenges as clients become more cautious with their spending. Furthermore, the uncertain environment has led to muted M&A activity, which could pose a headwind to revenue growth. Despite these challenges, the company’s current valuation appears justified, leading to the Hold rating.
In another report released today, Mizuho Securities also initiated coverage with a Hold rating on the stock with a $504.00 price target.
Based on the recent corporate insider activity of 85 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MCO in relation to earlier this year.