Moody’s Analytics president resigns, BMO Capital maintains Market Perform rating

Investing.com - BMO Capital has reiterated its Market Perform rating and $534.00 price target on Moody’s Corp (NYSE:MCO), a company currently trading at a P/E ratio of 43.3x and maintaining a 15-year streak of dividend increases, following the resignation of Stephen Tulenko as President of Moody’s Analytics. According to InvestingPro analysis, the company appears to be trading above its Fair Value, despite strong financial health metrics.

Tulenko will step down effective September 2, 2025, "to pursue another opportunity," according to the company’s announcement made after Thursday’s market close.

Andy Frepp, Chief Operating Officer of Moody’s Analytics, has been appointed Interim President while the company begins the process to identify a permanent replacement.

Management stated that Moody’s Analytics is in a "trusted, safe pair of hands" during this transition period.

BMO Capital noted that while they do not believe there were any issues with the company, the stock could experience pressure as Tulenko was reportedly well-respected by investors.

In other recent news, Moody’s Corporation reported its second-quarter 2025 earnings, surpassing Wall Street expectations. The company achieved an adjusted earnings per share of $3.56, exceeding the forecast of $3.38, and reported revenue of $1.9 billion, which was higher than the anticipated $1.85 billion. Despite these strong financial results, Moody’s stock experienced a decline in premarket trading, attributed to investor concerns over broader market conditions. In addition, Moody’s announced a leadership change with Andy Frepp appointed as the Interim President of Moody’s Analytics, following the resignation of Stephen Tulenko. The company has begun the search for a permanent leader for this division. Meanwhile, BMO Capital raised its price target for Moody’s to $534 from $509, maintaining a Market Perform rating, citing improved issuance activity and favorable credit market conditions. However, Raymond (NSE:RYMD) James reiterated its Underperform rating on Moody’s, expressing caution despite what it described as a generally healthy quarter for credit market issuance. These developments reflect the dynamic environment Moody’s is navigating in the financial sector.

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