Evercore ISI Initiates Coverage of Moody's with Outperform Rating

A recent report reveals that Evercore ISI Group has issued an Outperform recommendation for Moody's, projecting a price target indicating a 3.68% upside. However, the projected annual revenue displays a slight decrease, signaling mixed sentiments among investors.

Date: 03-10-2024

AI Rating: 6

The recent report focuses on the initiation of coverage for Moody's by Evercore ISI Group, which suggests a positive outlook as evidenced by the Outperform recommendation. This indicates that analysts have confidence in the company's stock performance in the near future.

Furthermore, the analyst price forecast points to a potential 3.68% upside from the current closing price of 473.81 GBX/share, which could attract bullish sentiments from investors looking for growth opportunities.

One critical aspect to address is the projected annual revenue for Moody's, stated at 6,547MM. However, it reflects a decrease of 0.12%, an indication that the company's revenue might face minor challenges ahead. This could potentially temper investor enthusiasm despite the optimistic price target.

On the earnings front, the projected annual non-GAAP EPS is given as 11.23, which could serve as a metric for assessing overall profitability. However, there is no explicit mention of net income or profit margins in the analysis, leaving a gap in understanding the complete financial health of the company.

In terms of shareholder sentiment, the report highlights a growing interest from institutional investors, with an increase of 21 funds holding positions in Moody's, alongside a rise in shares owned by institutions by 5.81% over the last three months. This growing confidence amongst fund managers adds a positive note to the overall outlook for Moody's.

Major stakeholders such as Berkshire Hathaway, TCI Fund Management, and Vanguard Index Funds have shown varied levels of ownership and adjustments, signifying active management and interest in Moody's stock. For instance, TCI Fund Management has increased its portfolio allocation by 12.70%, reflecting a bullish stance.

Stocks: MCO