UBS Raises Price Target on Moody’s Corp. (MCO) to $116 Following 2Q

UBS reiterated a Buy rating on Moody's Corp (NYSE: MCO), and raised the price target to $116.00 (from $108.00), following the company's 2Q. While MCO maintained FY16 guidance, it now expects to come in at the lower end of the range and reduced some underlying aspects. UBS reduced 2016 estimates for EPS to $4.57 from $4.59.

Analyst Alex Kramm commented, "After starting slow out of the gate, MCO shares outperformed very slightly on the back of a solid 2Q beat. While management now expects to come in toward the low end of its EPS guidance, this still calls for a sequential pickup in earnings relative to a softer 1H (and a very weak 1Q). We also believe that management's comments on today's call indicated that it was being conservative with changes to underlying guidance, and although MCO acknowledged that the EU Referendum has created a great deal of uncertainty, there are also several indications that issuance could return to healthy levels in the 2H. Looking ahead, we still expect an eventual stabilization in issuance and we remain impressed by MA's steady growth. Efforts to cut expenses (where MCO made solid progress in the 2Q) have also helped make up for pressure on MIS revenues, and we continue to believe that MCO's model will find success over the long term."

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 $105.29 yesterday.

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