UBS Cuts Moody’s Price Target, Maintains Neutral Rating

Core Viewpoint - UBS has lowered its price target on Moody's Corp to $490 from $515 while maintaining a Neutral rating, indicating a cautious outlook despite recent performance improvements [1] Group 1: Financial Performance - Moody's shares have outperformed following a solid quarterly report and constructive fiscal 2026 guidance, with the core ratings business expected to deliver high-single-digit revenue growth [1] - The outlook for Moody's core ratings business is viewed as stronger than that of S&P Global, suggesting potential for upside if capital markets remain supportive [1] Group 2: Segment Analysis - Moody's Analytics has shown mixed results relative to medium-term targets, although the company has undertaken selective divestitures to enhance growth prospects for this segment [2] Group 3: Competitive Positioning - Moody's is considered relatively insulated from artificial intelligence-related disruption risks that have affected parts of the information services sector, positioning it as a high-quality franchise with a favorable growth profile [3] - Despite its strong positioning, Moody's valuation trades at a meaningful premium to peers, which may limit its relative risk-reward attractiveness [3]