Benchmark Upgrades Moody's Corp (MCO) to Buy, Cites Strong Bond Issuance

September 17, 2012 7:08 AM EDT Send to a Friend
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Price: $96.94 +2.53%

Rating Summary:
    6 Buy, 8 Hold, 1 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 24 | Down: 28 | New: 14
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Benchmark upgraded Moody's Corp (NYSE: MCO) from Hold to Buy with a price target of $51.00 (from $43.00), citing the surge in bond issuance.

"We are raising our 2012 revenue and EPS estimates, due to a surge in bond
issuance, along with strong growth prospects at Moody’s Analytics," the analyst comments. "Following a slowdown in bond issuance in 2Q12, particularly in corporate finance and financial institutions, issuance has recovered strongly in recent weeks and into September."

For 2012, the firm estimates total revenue of $2.57 billion, up 13% y/y, with MIS (ratings) revenue of $1.72 billion, up 10%, and Analytics revenue of $848 million, up 19%. They forecast EPS of $2.77, excluding a $0.06 positive tax adjustment in 3Q12.

For an analyst ratings summary and ratings history on Moody's Corp click here. For more ratings news on Moody's Corp click here.

Shares of Moody's Corp closed at $43.82 yesterday.


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