Benchmark Raises Price Target on Moody's Corp (MCO), Sees 2011 Being The Best Issuance Year Since 2007
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Price: $498.77 --0%
Rating Summary:
20 Buy, 12 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 19
Rating Summary:
20 Buy, 12 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 5 | New: 19
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Benchmark is maintaining its Buy rating on shares of Moody's Corp (NYSE: MCO) and is raising its price target from $34 to $38 as it anticipates that 2011 will be the best year for issuance since 2007.
The firm is raising its Q1 revenue estimate to $531 million and its EPS to $0.56 to go inline with its belief that the company continues to benefit from strong bond issuance as global issuance of industrial, utility, and financial institution debt rose by 31% in March to $344 billion.
Reflecting its new Q1 estimates and forecasts, Benchmark is revising its FY11 revenue and EPS estimates to $2.23 billion and $2.22, up from $2.15 billion and $2.20. The firm notes that there still remains some uncertainty to the 2011 outlook as ratings related revenue could be lumpy and will be sensitive to swings in investor sentiment.
For FY12 the firm estimates that revenue will grow 7% to $2.39 billion and that earning will grow 11% to $2.48. These estimates include benefits from ongoing share repurchases.
Benchmark comments that, "The outlook for the year remains generally favorable. Demand for corporate financing is likely to remain strong reflecting refunding, increasing M&A activity and capital spending. Market conditions for financial institutions continue to improve, and the structured finance market conditions appear to have stabilized."
For more ratings news on Moody's Corp click here and for the rating history of Moody's Corp click here.
Shares of Moody's Corp closed at $35.20 yesterday.
The firm is raising its Q1 revenue estimate to $531 million and its EPS to $0.56 to go inline with its belief that the company continues to benefit from strong bond issuance as global issuance of industrial, utility, and financial institution debt rose by 31% in March to $344 billion.
Reflecting its new Q1 estimates and forecasts, Benchmark is revising its FY11 revenue and EPS estimates to $2.23 billion and $2.22, up from $2.15 billion and $2.20. The firm notes that there still remains some uncertainty to the 2011 outlook as ratings related revenue could be lumpy and will be sensitive to swings in investor sentiment.
For FY12 the firm estimates that revenue will grow 7% to $2.39 billion and that earning will grow 11% to $2.48. These estimates include benefits from ongoing share repurchases.
Benchmark comments that, "The outlook for the year remains generally favorable. Demand for corporate financing is likely to remain strong reflecting refunding, increasing M&A activity and capital spending. Market conditions for financial institutions continue to improve, and the structured finance market conditions appear to have stabilized."
For more ratings news on Moody's Corp click here and for the rating history of Moody's Corp click here.
Shares of Moody's Corp closed at $35.20 yesterday.
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