Moody's (MCO) Stock Forecast & Price Target

Moody's Corporation anticipates a strong performance in the latter half of 2025, driven by a significant increase in billed issuance and projected revenues for Moody's Investors Service (MIS) to rise by 12% year-over-year, reaching approximately $1,100 million. The company also expects to enhance its earnings per share guidance to a range of $14.10-$14.30, supported by robust trends in capital markets and improved M&A activity. Furthermore, Moody's Analytics is set to benefit from a growing demand in the banking and insurance sectors, as well as advancements in cross-selling strategies, contributing to an optimistic growth outlook for annual recurring revenue.

Moody's stock faces significant headwinds from potential declines in credit issuance, which could adversely affect its key revenue-generating segment, Moody's Investors Service, as indicated by a downside scenario assumption projecting a 10% earnings reduction. The company also experiences challenges in its Moody’s Analytics division, where growth has been impacted by strategic terminations and an account loss, contributing to a moderation in revenue that may lead to a contraction in price-to-earnings multiples. Additionally, various risks—including increased competition, integration challenges, and a slowdown in demand for critical services—further contribute to a negative outlook for the company's financial performance.