TransUnion stock rating reiterated at Buy by Needham on VantageScore pricing

Published 20/10/2025, 12:16
TransUnion stock rating reiterated at Buy by Needham on VantageScore pricing

Investing.com - Needham has reiterated its Buy rating and $115.00 price target on TransUnion (NYSE:TRU), the $15.27 billion market cap credit reporting agency with impressive gross profit margins of 59.25%, following the company’s announcement of new mortgage credit offerings. According to InvestingPro data, six analysts have recently revised their earnings estimates upward.

TransUnion revealed it will provide new mortgage credit offerings and pricing for VantageScore 4.0 at $4.00 starting in 2026. The company, which has maintained strong revenue growth of 9.34% and earned a GOOD financial health score from InvestingPro, will also offer VantageScore 4.0 at no cost to customers who purchase a credit report with a FICO score through the end of 2026.

The credit reporting agency plans to provide multi-year pricing for credit reports and VantageScore 4.0, along with a free VantageScore 4.0 credit score simulator for industry participants including resellers, lenders, and brokers.

Needham expects these moves will help slow the transition by lenders to FICO’s Direct Licensing Program. The research firm views the VantageScore pricing as compelling.

Needham also expressed approval of TransUnion’s plan to incorporate additional data such as rental and utility trade lines into mortgage credit files going forward.

In other recent news, TransUnion announced a new approach to mortgage credit scoring with significantly discounted pricing. The credit reporting agency is offering VantageScore 4.0 for mortgage lending at $4, presenting a competitive alternative to FICO’s increased price of $10. TransUnion will also provide free VantageScore 4.0 to customers who purchase a FICO score through the end of 2026. In addition, TransUnion expanded its partnership with RPM Living to implement its TruVision Resident Screening solution across 188,000 residential units. This enhanced agreement aims to streamline tenant screening processes for RPM Living.

Furthermore, TransUnion extended its role in the Canadian anti-spoofing call system, continuing to support telecommunications providers in their fight against phone spoofing and fraud. The company will maintain its position as the Secure Telephone Identity Policy Administrator for the STIR/SHAKEN call authentication ecosystem in Canada. On the analyst front, Seaport Global Securities initiated coverage of TransUnion with a Neutral rating. Meanwhile, Needham upgraded TransUnion from Hold to Buy, citing promising growth indicators and setting a price target of $115.00, driven by momentum with fintech clients and improving business conditions in India.

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