What 4 Analyst Ratings Have To Say About Moody's

During the last three months, 4 analysts shared their evaluations of Moody's MCO, revealing diverse outlooks from bullish to bearish.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $408.5, along with a high estimate of $454.00 and a low estimate of $374.00. Observing a 5.22% increase, the current average has risen from the previous average price target of $388.25.

Breaking Down Analyst Ratings: A Detailed Examination

The analysis of recent analyst actions sheds light on the perception of Moody's by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Moody's. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Moody's compared to the broader market.
• Price Targets: Delving into movements, analysts provide estimates for the future value of Moody's's stock. This analysis reveals shifts in analysts' expectations over time.

For valuable insights into Moody's's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Moody's analyst ratings.

Unveiling the Story Behind Moody's

Moody's, along with S&P Ratings, is a leading provider of credit ratings on fixed-income securities. The ratings segment, Moody's Investors Service, includes corporates, structured finance, financial institutions, and public finance ratings. MIS represents a majority of the firm's profit and about half the firm's revenue. The other segment, Moody's Analytics, consists of decision solutions, research and insights, and data and information.

Financial Insights: Moody's

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Revenue Growth: Over the 3 months period, Moody's showcased positive performance, achieving a revenue growth rate of 21.5% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Financials sector.

Net Margin: Moody's's net margin excels beyond industry benchmarks, reaching 32.31%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Moody's's ROE excels beyond industry benchmarks, reaching 16.74%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Moody's's ROA stands out, surpassing industry averages. With an impressive ROA of 3.89%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: Moody's's debt-to-equity ratio stands notably higher than the industry average, reaching 2.05. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

The Basics of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

This article was generated by Benzinga's automated content engine and reviewed by an editor.