UBS lowered its price target on Moody’s Corp (NYSE: MCO) to $490 from $515 while maintaining a Neutral rating.
The analyst noted that Moody’s shares had outperformed following a solid quarterly report and constructive fiscal 2026 guidance. The outlook for the core ratings business, which is expected to deliver high-single-digit revenue growth, was viewed as stronger than that of S&P Global, although it still leaves room for upside if capital markets remain supportive.
Moody’s Analytics was described as somewhat mixed relative to medium-term targets, though the company has taken steps, including selective divestitures, to position the segment for improved growth.
UBS also highlighted that Moody’s appears relatively insulated from artificial intelligence-related disruption risks that have pressured parts of the information services sector. The firm characterized Moody’s as a high-quality franchise with a favorable growth profile but noted that its valuation trades at a meaningful premium to peers, limiting relative risk-reward attractiveness.
