KBW Research Initiates Coverage on Moody’s as a “Market Perform” (MCO)

in dividend earnings Gold Gold Investing Gold Investment moodys shares by admin — September 2, 2010 5:53 am | no comments

Analysts at KBW Research on Thursday started coverage on credit ratings agency Moody’s Corporation ( MCO ) with a neautral “Market Perform” rating. The firm also set a $25 price target on the stock, which represents an expected 14% upside to its Wednesday closing price of $21.95. A KBW analyst commented, “We believe that Moody’s will continue to be an important player in U.S. and international capital markets. While its reputation has been tarnished by the financial crisis and regulatory agencies have focused on ways to constrain its influence, alternatives remain limited and its earnings power remains strong. We do believe that concerns regarding legal and regulatory issues will continue to pressure the stock.” Moody’s shares rose 10 cents, or +0.5%, in premarket trading Thursday. The Bottom Line We have avoided shares of MCO since our early June 2008 coverage began, when the stock was trading at $39.13. The company has a dividend yield of 1.91%, based on last night’s closing stock price of $21.95. The stock has technical support in the $18 price area. If the shares can rebound, we see overhead resistance around the $24 price level. We would remain on the sidelines for now. Moody’s Corporation ( MCO ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .