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Moody's downgraded to 'Sell' due to slow growth and weak margins despite high valuation.

Analyst Insights
22 Oct 2026
Seeking Alpha
View Source
Bearish
Moody's downgraded to 'Sell' due to slow growth and weak margins despite high valuation.

Moody's Corporation has been downgraded to a 'Sell' rating after years of underperformance and a worsening business mix. The company's growth has slowed significantly, with Q3 revenue increasing only 1% and operating margins declining, signaling weaker fundamentals. Despite a demanding valuation near 30 times forward earnings, Moody's growth prospects remain muted, and its revenue mix has become less attractive, with analytics now making up half of revenues and limited potential for margin expansion. Without clear catalysts, Moody's struggles to justify its premium valuation, raising concerns for investors.

Moody's Corporation holds a market cap of $83.31 billion and a dividend yield of 0.86% as of Oct 22, 2026 22:21 WIB. Despite the downgrade to a 'Sell' rating and concerns over its valuation and growth prospects, the stock price on Pluang has risen by 1.80% in the last day to USD 489.45. Trading volume stands at 1,897,786 shares, with 97% of Pluang order activity currently on the sell side, reflecting cautious investor sentiment.

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