{
  "id": 14925073,
  "title": "Jefferies cuts Moody’s stock price target to $560 on 4Q outlook risk",
  "url": "https://urgent.news/2026/10/16/jefferies-cuts-moodys-stock-price-target-to-560-on-4q-outlook-risk",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-16T09:54:53.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/analyst-ratings/jefferies-cuts-moodys-stock-price-target-to-560-on-4q-outlook-risk-93CH-4953535"
  },
  "original_language": "en",
  "account": "Jefferies revised its price target for Moody’s Corp (NYSE:MCO) to $560 from $610, while preserving a Buy rating for the stock. Currently priced at $483.69 with a market capitalization of $83.77 billion, InvestingPro analysis indicates the equity is modestly overvalued relative to its intrinsic value. Jefferies raised its guidance for the third quarter of 2026 revenue to $2,126 million, reflecting a 5.9% year-over-year growth, which surpasses the firm's prior forecast of a 3.4% increase. Despite rising interest rates throughout the quarter, Jefferies anticipates Moody’s revenues to expand by 7.8% year-over-year. Moreover, the firm projected its Analytics segment growth to rise by 9.0% year-over-year, representing a 0.4% acceleration from the previous quarter's estimate of 8.6%. Adjusted earnings per share (EPS) for the third quarter were raised by $0.15 to $4.21, primarily driven by robust high-margin investment management services (MIS) revenues. Over the past year, the company reported an EPS of $15.74, trading at a P/E ratio of 30.78, which is deemed relatively low considering the anticipated near-term earnings growth, and a PEG ratio of 0.84. As earnings are scheduled for release in five days, investors can obtain a comprehensive Pro Research Report for a more in-depth evaluation of MCO’s potential. Despite a full-year 2026 revenue projection of 7.2% year-over-year growth, Jefferies anticipates the positive third-quarter performance to be offset by a slight slowdown in the fourth quarter due to emerging challenges in the Ratings business. The firm expects management to adjust its full-year guidance, with the midpoint of revenue, margins, and earnings guidance now serving as the baseline. Moody’s recently disclosed its Q2 2026 earnings, which outperformed market expectations, with adjusted EPS of $4.68 and revenue amounting to $2.19 billion, surpassing analyst forecasts of $4.21 per share and $2.07 billion in revenue. This strong quarterly performance was acknowledged by Mizuho, which increased Moody’s price target to $530 and maintained a Neutral rating. Furthermore, Deutsche Bank upgraded Target Hospitality to a Buy rating from Hold, citing the company's potential benefits from the AI infrastructure expansion due to its involvement in the data center construction workforce. In parallel, Goldman Sachs shared insights from its annual Silicon Valley AI field trip, examining the impact of artificial intelligence on various industries. These developments underscore the evolving business landscape, shaped by technological advancements and market dynamics.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}