-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
After reviewing Q1 earnings, we raise our 12-month target price by $30 to $610, on a forward P/E of 32.3x our 2027 earnings estimate, a premium to peers given superior growth prospects that are less susceptible to AI disruption. We increase our 2026 EPS estimate to $16.92 from $16.89 and bump up 2027's to $18.91 from $18.45. Our revenue projections are $8.3 billion for 2026 and $8.9 billion for 2027. In February, we upgraded MCO shares, believing concerns about AI disruption were overblown. Still, despite this view, we would have given MCO a pass this quarter as the Iran conflict put a damper on economic sentiment. However, MCO delivered strong results with both Ratings and Analytics segments growing at a healthy 8% clip. The company also maintained its full-year 2026 adjusted EPS guidance of $16.40-$16.70. Most notably, AI proved to be a tailwind rather than a headwind this quarter, as Ratings revenue benefited from several large AI-related financing deals from hyperscalers.