EU and US could reach trade deal this weekend - Reuters
On Thursday, Morgan Stanley (NYSE:MS) analysts adjusted the price target for TransUnion (NYSE:TRU) shares, reducing it to $120 from $127, while sustaining an Overweight rating on the stock. The adjustment reflects a cautious stance in light of potential macroeconomic challenges ahead, despite a belief in the company’s strong fundamentals and growth prospects. Currently trading at $82.66, InvestingPro data shows the stock has experienced significant volatility, with a 27.39% decline over the past six months, though it maintains impressive gross profit margins of 60.01%.
The analysts emphasized the positive outlook for TransUnion, citing several factors expected to contribute to the Credit Bureau’s performance. Improved consumer credit conditions, a regulatory environment seen as more favorable, and considerable potential in the mortgage sector are anticipated to support outperformance in the coming years. This optimism is supported by InvestingPro data, which reveals that four analysts have recently revised their earnings expectations upward, with the company maintaining strong revenue growth of 9.2% over the last twelve months.
TransUnion is projected to benefit from a multi-year upcycle trend, according to the analysts. They predict that the company will experience revenue growth ranging from low double digits to mid-teens percentage and foresee a doubling in earnings per share (EPS) by 2028. This projection is based on the assumption that the Credit Bureaus are emerging from a subdued baseline, which could lead to significant growth even if the broader economic conditions remain uncertain. Subscribers to InvestingPro can access 12 additional key insights about TransUnion’s growth prospects and financial health, along with comprehensive valuation analysis in the Pro Research Report.
Despite the reduced price target, Morgan Stanley’s analysis suggests that TransUnion’s stock currently presents a strong value proposition. The stock is trading at a four-turn discount compared to its peer Equifax (NYSE:EFX) and a six-turn discount relative to the broader Information Services (NASDAQ:III) group. While the current P/E ratio stands at 56.54, InvestingPro analysis indicates the stock is trading slightly above its calculated Fair Value, suggesting investors should carefully consider their entry points.
The analysts’ commentary indicates that while the remainder of 2025 holds uncertainties, including the increased likelihood of a macroeconomic slowdown, the inherent strengths and market position of TransUnion may well position the company to navigate potential headwinds and capitalize on growth opportunities.
In other recent news, TransUnion reported impressive results for Q1 2025, surpassing market expectations. The company achieved an earnings per share (EPS) of $1.05, exceeding the forecasted $0.98, and posted revenues of $1.1 billion, surpassing the anticipated $1.07 billion. This marks a significant positive surprise for investors. TransUnion also reported an adjusted EBITDA margin improvement to 36.2%, indicating enhanced operational efficiency. The company completed an acquisition and launched several new products during the quarter, contributing to its robust performance.
Additionally, TransUnion’s diversified portfolio across sectors such as financial services and emerging verticals saw notable growth, with the U.S. financial services segment growing by 9%. Consumer lending and the auto business experienced growth of 11% and 14%, respectively. Analyst firms noted these developments, with some highlighting the company’s strong market position. TransUnion’s strategic initiatives and strong performance have instilled confidence among investors and analysts alike.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.