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Moody's (MCO) Buys Catylist to Strengthen CRE Capabilities

·3 min read

Moody’s MCO has acquired Catylist Inc. in an all-cash deal. Catylist provides commercial real estate (CRE) solutions to brokers. The terms of the deal, which is not expected to have any material impact on the company’s 2020 results, were not disclosed.

The acquisition of Catylist will strengthen Moody’s Analytics (MA) segment’s CRE platform. It will also significantly enhance MA’s coverage of property-level information and expand “the range of analytical solutions to the broker market.” The added features will enable Moody’s clients to “analyze inventory, pricing, and vacancy trends.”

Ronald D. Marten, CCIM, the Founder, President and CEO of Catylist said, “We’re excited to continue growing our business and to serving the evolving needs of the sector as part of a dynamic company like Moody’s.”

Stephen Tulenko, President of MA said, “The acquisition of Catylist complements Moody’s analytical capabilities and augments our growing suite of CRE tools that integrate rich and relevant data with powerful analytics. We look forward to continuing to invest and enhance our CRE capabilities to help our customers make better decisions.”

The deal complements Moody’s buyout of Reis Inc. in 2018. Reis is a leading provider of CRE data and analytics.

Our Viewpoint

In 2020, Moody’s grew meaningfully through several acquisitions. In the year, it acquired minority stakes in MioTech and Malaysian Rating Corporation, and purchased ZM Financial Systems, Acquire Media, Regulatory DataCorp and London-based RBA International. In 2019 as well, the company undertook several inorganic expansion initiatives.

Moody’s is pursuing growth in areas outside the core credit ratings service. The company has increased its exposure to the banking and insurance industry, branching into the emerging and fast-growing professional services, and ERS sectors. In fact, the rising share of the analytics business, which is not correlated with the volatility of interest rates, has added stability to Moody’s top-line growth.

In 2020, shares of Moody’s gained 22.2% against 19.9% decline of the industry it belongs to.

Currently, Moody’s carries a Zacks Rank #3 (Hold).

Stocks to Consider

Mvb Financial Corp.’s MVBF Zacks Consensus Estimate for 2020 earnings has been revised upward by 2.1% over the past 30 days. Moreover, the stock has rallied 59.1% over the past six months. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Synchrony Financial SYF has witnessed an upward earnings estimate revision of 14% for 2020 over the past 30 days. The company’s shares have jumped 49.8% over the past six months. At present, the company carries a Zacks Rank of 2.

The consensus estimate for earnings of TCG BDC, Inc. CGBD has remained unchanged 2020 over the past 30 days. Over the past six months, the stock has gained 22.7%. At present, it also carries a Zacks Rank #2.

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Moodys Corporation (MCO) : Free Stock Analysis Report
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Mvb Financial Corp. (MVBF) : Free Stock Analysis Report
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