Raymond James initiates QXO stock with Outperform rating on acquisition strategy
Investing.com - Needham upgraded TransUnion (NYSE:TRU) from Hold to Buy on Wednesday, setting a price target of $115.00 as the credit reporting agency shows promising growth indicators. According to InvestingPro data, the company maintains impressive gross profit margins of 59.25% and is expected to remain profitable this year.
The upgrade comes as Needham sees TransUnion positioned for strong performance in the second half of 2025 and beyond, driven by momentum with fintech clients, improving business conditions in India, and potential benefits from mortgage inquiry activity as interest rates begin to decline. The company’s solid financial health is reflected in its current ratio of 2.02, indicating strong liquidity to meet short-term obligations.
Needham highlighted TransUnion’s recent stock underperformance, noting shares have fallen 9.2% since the firm’s downgrade last August, compared to the S&P 500’s 14.7% increase during the same period.
The current valuation represents an attractive entry point according to Needham, with TransUnion trading at a fiscal year 2026 price-to-earnings multiple of 19x, which sits "well below" its closest competitors in the credit reporting space.
Needham’s $115 target is based on a fiscal year 2026 P/E multiple of 25x, with the firm citing a favorable risk-reward profile given both the valuation discount relative to peers and what it believes is "an upward bias to Street estimates." The stock currently trades at an EV/EBITDA multiple of 14.88x, with analyst targets ranging from $84 to $135 per share.
In other recent news, TransUnion has reported quarterly results that exceeded both consensus estimates and the company’s own guidance, showcasing stable lending volumes. Following these results, BMO Capital raised its price target for TransUnion to $118, maintaining an Outperform rating. Similarly, Stifel increased its price target to $127, citing the company’s internal efforts and slightly improved end markets, while keeping a Buy rating. Barclays also raised its price target to $95, maintaining an Equalweight rating, after TransUnion revised its financial guidance upward for the year.
RBC Capital reiterated its Outperform rating on TransUnion, setting a price target of $121, highlighting the company’s potential to exceed its fiscal year 2025 guidance. Meanwhile, TransUnion’s Board of Directors has declared a quarterly cash dividend of $0.115 per share for the second quarter of 2025. This dividend will be paid on September 8, 2025, to shareholders of record as of August 22, 2025. These developments indicate a positive outlook from analysts and a commitment to shareholder returns.
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