UBS Cuts Moody's Price Target to $490 After Q4 Revenue Surge
UBS reduced its price target on Moody’s to $490 from $515 while maintaining a Neutral rating following the Q4 earnings release. Moody’s reported fourth-quarter revenue of $1.9 billion, up 13% year-over-year, and full-year revenue of $7.7 billion, a 9% increase, propelled by Analytics and record Investor Services revenue.
1. Q4 and Full-Year Results
Moody’s posted fourth-quarter revenue of $1.9 billion, marking a 13% increase versus the prior year, driven by strong performance in Analytics—particularly Decision Solutions, Research and Insights, and Data & Information. Full-year revenue rose 9% to $7.7 billion, supported by elevated issuance volumes across asset classes and growth in subscription-based and recurring streams.
2. UBS Rating and Price Target
UBS maintained its Neutral rating on Moody’s while lowering the price target from $515 to $490, reflecting updated valuation assumptions following the Q4 report. The firm cited robust top-line growth tempered by competitive pressures and potential foreign-exchange headwinds in its revised outlook.