Raymond James analyst Patrick O’Shaughnessy downgraded Moody’s to Underperform from Market Perform without a price target. The bull case for Moody’s ratings franchise is unlikely to be realized and consensus ratings revenue expectations for 2025 and beyond are too high, the analyst tells investors in a research note. As such, the firm sees downside risk to consensus expectations. Raymond James says the slope of the long-term growth rate for ratings has likely shifted lower in recent years due to a number of factors, including the rise of private credit, corporate balance sheet de-leveraging, and higher interest rates.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on MCO:
- Moody’s price target raised to $570 from $500 at Barclays
- S&P Global price target raised to $564 from $530 at Morgan Stanley
- Moody’s price target raised to $451 from $420 at Morgan Stanley
- Moody’s acquires insurance analytics firm Praedicat, no terms
- Moody’s initiated with an Overweight at Wells Fargo