Moody’s stock rating reiterated as Underperform by Raymond James

Investing.com - Raymond (NSE:RYMD) James has reiterated its Underperform rating on Moody’s Corp (NYSE:MCO) following the company’s second-quarter 2025 financial results. The stock, currently trading at $509.74, shows mixed signals with a perfect Piotroski Score of 9 according to InvestingPro data, indicating strong financial health.

The investment firm maintained its cautious stance on Moody’s despite what it described as "a generally healthy quarter for issuance" in the credit markets.

Raymond James expressed concern about "somewhat fragile" market conditions and noted that leveraged loan activity has quieted recently, creating potential headwinds for Moody’s revenue streams.

The firm also highlighted "unclear risks and opportunities associated with private credit" as another factor in its below-consensus revenue and earnings per share outlook for the company.

Raymond James pointed to Moody’s current price-to-earnings multiple of approximately 34 times its below-consensus 2026 estimate, which exceeds both 3-year and 5-year next-twelve-months averages, suggesting "downside risk from multiple compression."

In other recent news, Moody’s Corporation announced its second-quarter 2025 financial results, which exceeded Wall Street expectations. The company reported an adjusted earnings per share (EPS) of $3.56, surpassing the forecasted $3.38. Additionally, Moody’s revenue reached $1.9 billion, higher than the anticipated $1.85 billion. These figures highlight the company’s strong performance in the quarter. Despite the positive earnings report, Moody’s stock experienced a decline in premarket trading, influenced by broader market conditions. Analysts have noted potential challenges in the financial sector that could impact the company’s future performance. Investors are advised to consider these developments when evaluating Moody’s.

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