Mizuho raises Moody’s stock price target to $496 on improved issuance volumes

Published 17/07/2025, 12:28
Mizuho raises Moody’s stock price target to $496 on improved issuance volumes

Investing.com - Mizuho (NYSE:MFG) maintained its Neutral rating on Moody’s Corp (NYSE:MCO) while raising its price target to $496.00 from $491.00 ahead of the company’s second-quarter earnings report, due July 23. According to InvestingPro data, the stock currently trades at $500.23, with analysts’ targets ranging from $445 to $573.

The price target adjustment comes after Mizuho observed a positive June inflection in rated issuance growth, primarily driven by strong recovery in high-yield and investment-grade bonds, following issuance declines in April and May.

Mizuho has modestly raised its 2025 and 2026 revenue and earnings per share estimates for Moody’s due to higher expected issuance volumes, which form a core part of the company’s business.

For Moody’s Analytics division, Mizuho anticipates stable year-over-year growth led by the Data & Services segment, contributing to the overall improved outlook.

The firm’s analysis also noted that the sharp recovery in equity markets since early April should help drive higher Indices growth for S&P Global (NYSE:SPGI), which reports earnings in the same period as Moody’s.

In other recent news, Moody’s Corporation has completed the acquisition of ICR Chile, a prominent credit rating agency in Chile. This transaction will see ICR integrated into Moody’s Local, expanding the company’s footprint in Latin America’s credit rating sector. Financial terms of the acquisition were not disclosed, but Moody’s indicated it will not materially impact its 2025 financial results. Meanwhile, RBC Capital Markets has maintained its Outperform rating for Moody’s, with a price target of $550, citing the company’s resilience amid economic challenges and growth opportunities in various sectors. Conversely, BMO Capital Markets has reduced its price target for Moody’s to $456, reflecting adjustments following Moody’s revised 2025 issuance guidance. Oppenheimer also lowered its price target to $489, while maintaining an Outperform rating, noting robust ratings revenue but acknowledging the revised full-year guidance due to economic factors. Stifel adjusted its price target to $468, citing market volatility and a downturn in issuance activity, while maintaining a Hold rating on the stock. These developments highlight Moody’s strategic moves and the varied analyst perspectives on its future performance.

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

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