MCO·Moody's Corporation

Daiwa upgraded Moody's (MCO) to Outperform with a $590 price target, citing a favorable issuance environment and increased merger activity. This upgrade, along with RBC's view of MCO as attractive amidst the GenAI-related selloff, suggests positive sentiment for the stock. The company's Q4 earnings beat expectations, driven by strong analytics demand and high issuance volume, as well as record revenue and strategic initiatives focused on AI-driven growth. These factors point to a strong financial position and potential for continued expansion. While the company is pushing back against concerns about AI disruption, the market should watch for further details on the company's strategic initiatives and how they will drive future growth. The 2026 outlook provided by the company will be key for investors.