UPDATE - UBS initiates coverage on Moody's (MCO) with a Neutral; Returning to Some Type of Normalcy

UPDATE - UBS initiates coverage on Moody's (NYSE: MCO) with a Neutral rating. PT $41.

UBS analyst says, "We think the issuer-paid credit rating business model will remain the primary (and most efficient) method of delivering opinions on credit-worthiness to the market. In this context, we view Moody’s as a clear leader with economies of scale and brand recognition, which it has leveraged to diversify into analytics businesses."

"We think most challenges facing MCO are reflected in the stock—since ’09, MCO has traded at a (23)% discount to peers, vs. a 6% premium in ’01-’07. Upside from here will require clarity on remaining regulatory/legal issues and signs of sustained debt market recovery."

To see more ratings on MCO, Click Here

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