Benchmark Downgrades Moody's Corp (MCO) to Hold, Difficult Comps
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Price: $484.96 -0.5%
Rating Summary:
20 Buy, 12 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
20 Buy, 12 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Benchmark downgraded Moody's Corp (NYSE: MCO) from Buy to Hold with a price target of $71 (from $60) citing slowing growth and limited upside.
"Despite generally favorable bond issuance trends and continued expected strength at Moody's analytics, y/y comparisons for Moody's (MCO) become significantly more difficult in 2H13, with Ratings revenue comping against 35% and 42% growth rates in 3Q12 and 4Q12, respectively," analyst Analyst Edward J. Atorino said. "As such, Ratings revenue growth could fall to the low-single digits in 3Q13 and possibly be negative in 4Q13. Higher costs are also expected to limit EPS growth in 2H13."
For the year, the firm expects total revenues of $2.93 billion, up 7.5%, with Ratings revenues of $2.01 billion, up 7% y/y, and Analytics up 9% y/y. EPS is expected to be $3.54, up 16% y/y, with EBITDA of $1.3 billion, up 10% y/y.
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 $65.00 yesterday.
"Despite generally favorable bond issuance trends and continued expected strength at Moody's analytics, y/y comparisons for Moody's (MCO) become significantly more difficult in 2H13, with Ratings revenue comping against 35% and 42% growth rates in 3Q12 and 4Q12, respectively," analyst Analyst Edward J. Atorino said. "As such, Ratings revenue growth could fall to the low-single digits in 3Q13 and possibly be negative in 4Q13. Higher costs are also expected to limit EPS growth in 2H13."
For the year, the firm expects total revenues of $2.93 billion, up 7.5%, with Ratings revenues of $2.01 billion, up 7% y/y, and Analytics up 9% y/y. EPS is expected to be $3.54, up 16% y/y, with EBITDA of $1.3 billion, up 10% y/y.
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 $65.00 yesterday.
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