
Moody's (MCO) Stock Forecast & Price Target
Moody's (MCO) Analyst Ratings
Bulls say
Moody's Corporation is projected to experience robust revenue growth in its Moody's Investors Service (MIS) segment, with expected revenues rising by 12% year-over-year to $1.1 billion, significantly exceeding consensus estimates. This positive outlook is further supported by a notable 23% year-over-year increase in billed issuance in August and a strong uptick in high-yield issuance in September, indicating a favorable market for credit ratings. Additionally, growth in the Banking segment's lending pipeline and enhancements to their service offerings, particularly in financial analytics, contribute to an optimistic expectation for annual recurring revenue (ARR) growth in the upcoming fiscal year.
Bears say
Moody's faces a negative outlook primarily due to potential headwinds in credit issuance and a slowdown in its Analytics segment, which could affect earnings by approximately 10%. This uncertainty is compounded by an anticipated decline in recurring revenues and overall industry challenges, including increased competition and decreased demand for critical offerings like KYC and Enterprise Risk Services software. Additionally, the firm's estimates for revenue growth have been revised downward in light of macroeconomic factors, highlighting vulnerabilities in its revenue-generating segments and long sales cycles.
This aggregate rating is based on analysts' research of Moody's and is not a guaranteed prediction by Public.com or investment advice.
Moody's (MCO) Analyst Forecast & Price Prediction
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