Deep Dive Into Moody's Stock: Analyst Perspectives (12 Ratings)

12 analysts have expressed a variety of opinions on Moody's MCO over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $473.42, a high estimate of $514.00, and a low estimate of $392.00. Marking an increase of 8.11%, the current average surpasses the previous average price target of $437.91.

Investigating Analyst Ratings: An Elaborate Study

A clear picture of Moody's's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Moody's. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Moody's compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Moody's's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Capture valuable insights into Moody's's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on Moody's analyst ratings.

Delving into Moody's's Background

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.

Breaking Down Moody's's Financial Performance

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

Revenue Growth: Moody's's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 21.62%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Financials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 30.38%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): Moody's's ROE stands out, surpassing industry averages. With an impressive ROE of 15.01%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Moody's's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.68%, the company showcases efficient use of assets and strong financial health.

Debt Management: Moody's's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.93, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

The Core of Analyst Ratings: What Every Investor Should Know

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

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