03.07
Business Wire, March 05, 2010
http://www.zacks.com/
CHICAGO — Zacks.com announces the list of stocks featured in the Analyst Blog.
Every day the Zacks Equity Research analysts discuss the latest news and
events impacting stocks and the financial markets. Stocks recently
featured in the blog include: Moodys Corp (NYSE: MCO),
Thomson-Reuters Corp. (NYSE: TRI),
RiskMetrics Group Inc. (NYSE: RISK),
Dun & Bradstreet Corp. (NYSE: DNB)
and Interactive Data Corporation (NYSE: IDC).
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Here are highlights from Thursdays Analyst Blog:
Raising Price Target for Moodys
Moodys Corp (NYSE: MCO)
is an industry leader in credit ratings. We maintain our Neutral rating
on Moodys but raise our price target to $29.00 from our previoustarget
of $25.00 on better-than-expected results.
Results for 2009, although below year-ago levels, were better than the
Zacks Consensus Estimates, reflecting an improvement in credit markets,
continuing strength in corporate debt issuance and growth in Moodys
Analytics business.
We believe that Moodys remains a solid franchise in rating debt
instruments and will show substantial growth with its diversified credit
research business model and international growth.
However, the company provided a conservative outlook for 2010 on rising
operating expenses. Although we believe that over the longer-term
Moodys will show substantial growth, we maintain a cautious approach as
margins may come under pressure due to incremental costs related to
regulatory issues in 2010.
Although the economy is showing signs of revival, we expect a slow
recovery in debt markets as they face a tempered credit environment.
Moreover, we dont expect a major improvement in the Structured Finance
business. While management expects Structured Finance revenue to
increase in the mid-single-digit percent range in 2010 reflecting modest
growth in most asset classes, we note that investor confidence remains
limited for the near-term.
Moodys competitors are mostly privately held, such as Fitch Ratings and
Standard & Poor’s. The company also competes against several diversified
companies, such as Thomson-Reuters Corp
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