Moody's Corporation Stock Price Targets
Moody's Corporation (MCO) Stock Price Targets & Analysis
Comprehensive analysis of short, mid, and long-term price targets for Moody's Corporation (MCO).
Give me a comprehensive price target analysis for Moody's Corporation (MCO).
I have successfully drawn the horizontal trendlines for Moody's Corporation (MCO) at the specified low, median, and high price targets extending 30 days into the future:
- Low Target: $475.00 (Green)
- Median Target: $534.50 (Blue)
- High Target: $595.00 (Red)
Executive Summary
Moody's exhibits solid fundamentals with a robust valuation, supported by steady earnings and technical indicators suggesting ongoing momentum. The stock's price outlook remains positive with clear support and resistance levels aligned with analyst targets, indicating potential for upward movement over short to long-term horizons.
Fundamental Analysis
| Metric | Value |
|---|---|
| Current Price | $516.46 |
| Market Cap | ~$92.6 billion |
| Enterprise Value | ~$97.9 billion |
| Trailing P/E | 43.84 |
| Forward P/E | 38.77 |
| Price-to-Book | 23.46 |
| Return on Equity | 53.02% |
| Profit Margins | 29.18% |
| Debt-to-Equity | 179.87% |
| Total Cash | ~$2.29 billion |
| Total Debt | ~$7.39 billion |
| Dividend Yield | 0.73% |
Despite high leverage, Moody's maintains healthy margins and strong profitability, supported by a disciplined financial stance.
Earnings Analysis
- Recent Earnings Performance: Consistent net income (~$578M), with EBITDA reflecting stable operational cash flow.
- EPS Trends: Slight decline short-term but multi-year EPS growth from ~13.88 to ~15.58 across annual periods.
- EPS Revisions: Occasional upward revisions with more upward trends over the year (21 up vs. 0 down over the past 12 months), signaling positive analyst sentiment.
- Earnings Quality: Stable revenue growth, healthy margins, and recurring income streams suggest sustainability and resilience.
Technical Analysis
- Price Action & Support/Resistance: Current price near the median analyst target, with key support around $475 and resistance at $595.
- Moving Averages: Price consistently above the 50-day MA (~490), indicating ongoing bullish momentum.
- RSI (14): Approximately 55-65, suggesting moderate bullish momentum without overbought conditions.
- MACD: Positive and trending above signal line, confirming upward momentum.
Analyst Consensus & Price Targets
| Metric | Value |
|---|---|
| Median Price Target | $534.50 |
| Mean Price Target | $540.75 |
| Number of Analysts | 20 |
| High Price Target | $595 |
| Low Price Target | $475 |
The consensus reflects confidence in moderate to substantial upside potential.
Price Target Analysis
- Short-Term (3 months): Around $534.50 (Median Target). The stock is currently trading close to this level, with technical momentum supporting stability. Key drivers include earnings continuation and macroeconomic stability.
- Mid-Term (12 months): Projection near $540-$560, driven by earnings growth, favorable analyst revisions, and consistent technical support.
- Long-Term (3+ years): Upward potential approaching or exceeding $595, contingent on sustained earnings growth, expansion in revenue streams, and positive market sentiment.
Risks & Opportunities
| Risks | Opportunities |
|---|---|
| Rising debt levels and macroeconomic uncertainty | Growth in credit rating and analytics services |
| Market valuation concerns | Attractive dividend yield and steady cash flows |
| Regulatory or sector-specific headwinds | Long-term earnings growth driven by global expansion |
Investment Recommendation
Given the solid fundamentals, positive technical indicators, and favorable analyst targets, a Hold to Moderate Buy is recommended for the next 12-24 months. There is significant upside potential, with an expected target close to the high of $595, if growth and momentum persist. Investors should monitor debt levels and macroeconomic factors that could influence valuations.
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