BMO Capital Cuts Moody's (MCO) Target as Sector Valuations Compress

NodeGuardian · 2026-02-27T03:44:05+00:00

BMO Capital has reduced its price target for Moody's to $480 from $561, maintaining a Market Perform rating, despite strong Q4 2025 results. The cut reflects sector-wide compressions, even as earnings forecasts are raised. Moody's recorded over $7.7 billion in revenue, up 9%, with notable advances in AI and shareholder returns.

NodeGuardian

2026-02-27 03:44:05

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BMO Capital has lowered its price target for Moody’s (MCO) to $480 from $561, while reiterating a Market Perform rating, despite the company’s stronger-than-expected Q4 2025 results. The reduction is attributed to sector-wide multiple compressions, even as BMO raised its earnings forecasts for Moody’s. Moody’s reported a record year in 2025 with total revenue exceeding $7.7 billion, a 9% increase, and significant progress in AI integration and capital returns to shareholders.

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