Moody's Shares Rally On UBS Upgrade To Buy
Moody's Corp. shares jumped on Tuesday following a stock rating upgrade by UBS. "We see a much rosier picture than we believe the market is currently pricing in after a sell-off that we believe was overstated," said analyst Alex Kramm at UBS, who raised the stock to a buy from neutral. The analyst expects Moody's to post high single-digit growth in its ratings business and the stock to gain as bond issues rise on the back of improving confidence in the economy. Kramm has a 12-month price target of $116 on Moody's. Shares rallied 4% to $102.05 but they are still off 10% from their 52-week high of $113.87 on July 21.
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