RBC Capital positive on CSGP, EFX, EXPN, TRU stock post-conference

On Monday, RBC Capital Markets provided insights on several companies following the RBC Financials conference. Analysts from the firm discussed the prospects of CoStar Group , Inc. (NASDAQ:CSGP), Equifax Inc . (NYSE:EFX), Experian PLC (LON:EXPN), MSCI Inc . (NYSE:MSCI), S&P Global Inc. (NYSE:SPGI), and TransUnion (NYSE:TRU), based on presentations and conversations at the event.

CoStar Group’s CFO expressed optimism about the acceleration of revenue growth for CoStar Suite and Apartments.com, attributing this to increased hiring efforts within their salesforce. The company’s investments in Homes.com, the acquisition of Matterport (NASDAQ:MTTR), and the bid for Domain Holdings were also key topics of discussion.

Credit bureaus TransUnion ($15.9B market cap), Equifax, and Experian conveyed a message of stable to improving lending volume growth, despite concerns over a drop in consumer confidence and potential deceleration in consumer spending. TransUnion’s CFO underscored stable lending volumes and the expectation to meet the higher end of guidance if current trends persist. The company’s impressive 60% gross profit margin and 9.2% revenue growth in the last twelve months suggest strong operational efficiency. According to InvestingPro data, TransUnion maintains healthy liquidity with a current ratio of 1.7, indicating solid financial health. The company also noted a positive outlook from larger FinTechs and anticipates a reacceleration of revenue growth in India following the easing of lending restrictions by the Reserve Bank of India (NSE:BOI) (RBI). Growth in India is expected to shift to a moderate pace in the first quarter of 2025 but then accelerate to double digits, aiming for a 10% increase in the fiscal year 2025. InvestingPro analysis shows that while TransUnion trades at a relatively high P/E ratio of 56, analysts remain optimistic about its growth prospects, with comprehensive insights available in the Pro Research Report, part of InvestingPro’s coverage of 1,400+ US stocks. TransUnion also expects robust growth in emerging verticals such as insurance and Trusted Calls.

Equifax discussed a temporary slowdown in government verification revenue in the first half of 2025, linked to California ending a contract due to changes in the CMS reimbursement programs. However, Equifax is confident about a rebound to double-digit growth in the second half of 2025, driven by various factors including pricing, record growth, and an increase in Social Security Administration volume.

Experian anticipates that the loosening of credit underwriting standards will boost lending activity, projecting about a 1.5% positive impact on revenue growth from the normalization of the credit environment. Despite current macroeconomic challenges affecting Brazil’s B2B revenue growth, Experian expects a recovery in the medium term and is exploring new opportunities in consumer-permissioned employment and income verification data for its extensive consumer services customer base.

MSCI’s Chief Technology Officer highlighted the potential for monetization and improved operating efficiency through the company’s GenAI initiative and was optimistic about the prospects for Agentic AI.

The insights provided by RBC Capital Markets reflect the firms’ current strategies and market positions, as discussed during the RBC Financials conference, offering a glimpse into their expected performance and strategic directions for the upcoming period. Based on InvestingPro’s Fair Value analysis, TransUnion currently appears undervalued. Subscribers can access 10 additional ProTips and detailed valuation metrics through the platform’s comprehensive research tools, essential for making informed investment decisions.

In other recent news, TransUnion reported its financial results for the fourth quarter of 2024, exceeding earnings expectations. The company achieved earnings per share of $0.97, slightly above the projected $0.96, and reported revenue of $1.04 billion, surpassing the anticipated $1.03 billion. This marks the fifth consecutive quarter that TransUnion has outperformed its revenue and adjusted EBITDA guidance. Additionally, the company has launched a new freemium credit management platform in collaboration with Credit Sesame, aimed at enhancing consumer engagement.

TransUnion also announced strategic leadership appointments, with Mohamed Abdelsadek taking on the role of Executive Vice President and Chief Global Solutions Officer, and Tiffani Chambers being named Executive Vice President and Chief Operations Officer. These appointments are part of TransUnion’s efforts to bolster its global solutions capabilities and operational efficiency. The company has been focusing on technology modernization and international expansion as key strategic initiatives.

Furthermore, TransUnion achieved $100 million in cost synergies from its NuStar acquisition, exceeding initial targets. The company is also looking forward to a projected revenue growth of 4.5% to 6% for 2025 on an organic constant currency basis, with adjusted EBITDA growth anticipated between 3% and 6%. Analyst firms have not issued recent upgrades or downgrades, but the company’s consistent performance and strategic initiatives continue to be a focal point for investors.

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