TransUnion stock rating reiterated at Outperform by RBC Capital

Investing.com - RBC Capital has reiterated an Outperform rating on TransUnion (NYSE:TRU) with a price target of $121.00, citing potential for the company to exceed its fiscal year 2025 guidance. According to InvestingPro data, TransUnion currently trades at $89.46, with analysts’ targets ranging from $84 to $135, suggesting significant upside potential.

The investment firm believes TransUnion’s valuation remains attractive compared to both historical levels and industry peers, positioning the company favorably in the market. InvestingPro analysis shows the company maintains impressive gross profit margins of 59.25% and operates with a moderate debt level, with a current ratio of 2.02 indicating strong liquidity.

RBC Capital also noted that Equifax (NYSE:EFX) is expected to benefit from lower 10-year Treasury yields and a recovery in mortgage activity, while monitoring potential reacceleration in Government Verification services.

The firm has reduced its fiscal year 2026 earnings per share estimates for both TransUnion and Equifax, reflecting a downward revision in mortgage volume growth expectations to 5% year-over-year and an adjusted mortgage pricing increase of 10% year-over-year.

RBC Capital also slightly lowered its fiscal year 2026 margin expansion expectations for both companies, anticipating they will take a conservative approach to volume growth and guidance.

In other recent news, TransUnion has declared a quarterly cash dividend of $0.115 per share for the second quarter of 2025, payable on September 8, 2025, to shareholders of record as of August 22, 2025. The company reported quarterly results that surpassed both consensus estimates and its own guidance, showcasing stable lending volumes. Following these results, several financial firms have adjusted their price targets for TransUnion. BMO Capital raised its price target to $118, maintaining an Outperform rating. Stifel increased its target to $127, citing the company’s internal efforts and slightly improved market conditions, while maintaining a Buy rating. Barclays adjusted its target to $95, noting the company’s upward revision of its financial guidance. Morgan Stanley also raised its price target to $122, describing the financial results as a "solid beat" and maintaining an Overweight rating. These developments reflect recent positive momentum for TransUnion in the financial markets.

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