Moody's shares rise after upbeat 2026 forecast, execs dismiss AI worries

Moody's Corp MCO.N shares rising 6.4% to $450.16 on Weds after it issued an upbeat 2026 profit forecast and its executives dismissed investor fears over potential disruption from AI

MCO shares on course for steepest daily pct gain since Apr 9

Co reassured investors by highlighting its proprietary data and forecast full-year adj profit of $16.40-$17.00, above analysts' avg estimate of $16.38 per LSEG

Ratings agency also beat Q4 adj profit estimates, helped by a 17% rise in revenue at its MIS credit rating arm amid a pickup in bond market activity

Stock recently at ~25x expected earnings, vs its 5-yr avg of ~31x, suggesting shares may be undervalued, per LSEG Datastream

Despite rise on the session, MCO shares are down ~12% YTD, underperforming the S&P 500's .SPX 0.9% gain

Median analyst PT of $559.50 implies ~24% upside from current levels; avg rating of 26 analysts is "buy"