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Investing.com - BMO Capital lowered its price target on Moody’s Corp (NYSE:MCO) to $507.00 from $534.00 on Thursday, while maintaining a Market Perform rating on the stock. According to InvestingPro data, Moody’s, with its $84.58B market cap, is currently trading above its Fair Value, while maintaining strong financial metrics with a 72.78% gross profit margin.
The research firm’s decision came after Moody’s reported stronger-than-expected results, with better issuance in leveraged loan, high-yield, and private credit markets than anticipated.
BMO Capital noted that Moody’s Analytics (MA) annual recurring revenue remained consistent, with management indicating it aims to manage that business segment for high-single-digit growth.
The firm highlighted margin strength in both Moody’s Investors Service (MIS) and Moody’s Analytics segments, with a path toward higher margins in the Analytics division.
Following the strong results, Moody’s management raised its earnings per share guidance, primarily driven by MIS performance but also reflecting some incremental margin improvement in the Analytics segment.
In other recent news, Moody’s Corporation reported strong financial results for the third quarter of 2025. The company exceeded analysts’ expectations with an adjusted earnings per share (EPS) of $3.92, surpassing the projected $3.67. Revenue also reached an impressive $2 billion, higher than the anticipated $1.95 billion. These figures highlight Moody’s robust performance despite broader market conditions. Analysts had been closely watching these results, which have now set a new benchmark for the company’s financial health. The earnings announcement underscores Moody’s ability to deliver solid growth. Additionally, the company continues to attract attention from investment firms, although no specific upgrades or downgrades were noted in the recent reports. These developments are crucial for investors monitoring Moody’s trajectory in the financial markets.
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