Moody’s stock rating reiterated at Outperform by RBC on AI and private credit growth

Published 17/09/2025, 13:42
Moody’s stock rating reiterated at Outperform by RBC on AI and private credit growth

Investing.com - RBC Capital has reiterated an Outperform rating on Moody’s Corp (NYSE:MCO) with a price target of $550.00, representing potential upside from the current trading price of $508. According to InvestingPro data, the stock maintains a "GOOD" overall financial health score.

The investment firm maintained its positive outlook following a meeting with Moody’s CFO Noémie Heuland and Data Solutions GM Andrew Bockelman, where management discussed artificial intelligence monetization opportunities.

According to RBC Capital analyst Ashish Sabadra, Moody’s is leveraging AI to enhance workflows, drive premium product adoption, and support operational leverage across its business lines.

The company identified private credit as a continuing secular growth opportunity, with Moody’s utilizing its proprietary data and market reputation to improve transparency in this expanding sector.

RBC noted that Moody’s is also capitalizing on other long-term growth drivers, including AI infrastructure development and financing requirements for net-zero initiatives across global markets.

In other recent news, Moody’s Corporation has announced plans to acquire a majority equity stake in the Egyptian rating agency Middle East Rating & Investors Service (MERIS). This move is subject to regulatory approvals and aims to strengthen a partnership that began in 2003. Additionally, Moody’s has experienced a leadership change with the resignation of Stephen Tulenko as President of Moody’s Analytics, effective September 2, 2025. Andy Frepp has been appointed as the Interim President of Moody’s Analytics, while the company searches for a permanent replacement.

Analyst firms have provided their latest assessments on Moody’s stock. UBS reiterated its Neutral rating with a $515 price target after meetings with Moody’s CFO, citing strong structural tailwinds and near-term business strength. Meanwhile, BMO Capital raised its price target for Moody’s to $534 from $509, maintaining a Market Perform rating. BMO Capital noted improved issuance activity and a favorable mix of Investment Grade ratings as contributing factors to their revised target. These developments reflect the ongoing changes and assessments within Moody’s Corporation.

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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