Morgan Stanley analyst Toni Kaplan said she is increasingly cautious on the credit rating agencies given her view that recent spread widening has the potential to further impact issuance. With about 60% of revenue and about 80% of profits coming from its rating agency business, she expects Moody's (MCO) to come under pressure in a more challenging issuance environment and downgraded the stock to Underweight from Equal Weight. Kaplan, who forecasts a below consensus view for Ratings revenue at Moody's to be down 1% in FY19, lowered her price target on the shares to $135 from $156. Kaplan keeps an Equal Weight rating on credit rating agency peer S&P Global (SPGI), but lowered her price target on the shares to $186 from $202.

FY24 consensus $14.11. Raises FY24 revenue growth view to 6%-8% from 5.5%-7.5%, consensus $13.43B.