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Investing.com - Stifel raised its price target on TransUnion (NYSE:TRU) to $127.00 from $112.00 on Friday, while maintaining a Buy rating on the credit reporting agency’s stock. The company, currently valued at $18.45 billion, has seen strong momentum with analyst targets ranging from $84 to $130.
The research firm attributed TransUnion’s outperformance primarily to the company’s internal efforts, though it noted end markets have improved slightly. Stifel pointed out that management kept guidance conservative, stating that if current market conditions persist, the company should exceed the high end of its guidance range. This optimism is supported by the company’s impressive 8.85% revenue growth and strong gross profit margins of nearly 60%. InvestingPro data reveals 13 additional key insights about TransUnion’s performance metrics.
Stifel believes this positions TransUnion for beat-and-raise results in the next quarter, with the main question being the magnitude of outperformance. The firm’s updated estimates exceed the company’s guidance and may still prove conservative if business momentum continues to improve.
The new price target reflects a 6x EV/EBITDA discount to the Information Services (NASDAQ:III) peer group, consistent with Stifel’s prior valuation approach, though both TransUnion’s estimates and comparable company valuations have increased. According to InvestingPro’s Fair Value analysis, TransUnion appears to be trading above its Fair Value, with a current P/E ratio of 52.15.
TransUnion is expected to complete its multi-year investment program, which should set the business up for improved free cash flow in 2026, with a target of 90%+ adjusted net income to free cash flow conversion. The company maintains a healthy financial position with a current ratio of 2.05, indicating strong liquidity to support its growth initiatives.
In other recent news, TransUnion reported its Q2 2025 financial results, exceeding market expectations with an adjusted earnings per share (EPS) of $1.08, surpassing the forecasted $0.99. The company also achieved revenue of $1.14 billion, beating the anticipated $1.1 billion. Following these results, TransUnion raised its financial guidance for the year. Barclays (LON:BARC) responded by increasing its price target for TransUnion to $95 from $85, maintaining an Equalweight rating. Morgan Stanley (NYSE:MS) also adjusted its price target upwards to $122 from $120, citing a "solid beat" on financial results and a guidance raise. These developments reflect the company’s positive performance and the adjustments by analysts indicate confidence in TransUnion’s future prospects.
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