🔮 Better than the Oracle? Our Fair Value found this +42% bagger 5 months before Buffett bought itRead More

Stifel lifts Moody's shares target on strong Q1

EditorEmilio Ghigini
Published 2024-05-07, 08:20 a/m
MCO
-

On Tuesday, Stifel, a financial services firm, increased its price target of Moody's Corp (NYSE:MCO) shares to $374 from $350, while keeping a Hold rating on the stock.

This adjustment comes in the wake of Moody's solid performance in the first quarter of 2024, which the analyst attributes to significant business advancements achieved during the period.

The unchanged revenue guidance for Moody's Investors Service (MIS) was highlighted, despite the company's robust first-quarter results. The firm's cautious stance for the second half of the year is due to the substantial pullforwards in the quarter and the potential risks looming in the latter half of 2024. However, Moody's is now leaning towards the upper end of its revenue guidance ranges.

The analyst noted that the forecast for Moody's Analytics (MA) revenue is influenced by foreign exchange headwinds, rather than any fundamental shift in the business's growth trajectory. As a result, Stifel has made revisions to its financial model, primarily to account for the considerable pullforwards that bolstered MIS's first-quarter strength.

The increase in the target price to $374 reflects the application of Info Services 2024 enterprise value to EBITDA and price-to-earnings valuations, excluding Moody's itself, to Stifel's 2025 estimates for the company.

Although there was a slight decrease in estimates, the valuation has risen due to higher comparative valuations and a greater emphasis on the projections for 2025.

The analyst's comments suggest a careful analysis of Moody's financial outlook, taking into account both the recent performance and the anticipated future market conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.