Goldman Sachs analyst George Tong has maintained their neutral stance on TRU stock, giving a Hold rating yesterday.
Geoff Meacham has given his Hold rating due to a combination of factors that balance potential upsides with ongoing concerns. TransUnion’s fourth quarter results were indeed positive, surpassing both Goldman Sachs’ and consensus estimates in terms of revenue, EBITDA margins, and EPS. The company is starting to witness a stabilization in lending volumes from fintech customers and subprime borrowers, with the fourth quarter showing a continuation of the third quarter’s trends. This stabilization suggests that there might be room for TransUnion to exceed its conservative guidance for 2024, should the lending volumes show any signs of recovery.
Moreover, TransUnion is implementing new cost transformation initiatives aimed at enhancing efficiency and reducing expenses. These initiatives include the establishment of global capability centers in regions with lower costs and the consolidation of their technology onto a unified product delivery platform, which is expected to yield significant free cash flow improvements by 2026. Despite these positive signs, there are still factors that warrant caution, such as the continued decline in credit card and personal loan volumes, and modest growth projections for Neustar due to cyclical challenges. These mixed signals contribute to the rationale behind maintaining a Neutral stance on TransUnion’s stock.
In another report released yesterday, Evercore ISI also maintained a Hold rating on the stock with a $70.00 price target.
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Based on the recent corporate insider activity of 82 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of TRU in relation to earlier this year.
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TransUnion (TRU) Company Description:
TransUnion engages in the provision of information and risk management solutions. It also provides consumer reports, risk scores, analytical services and decision making capabilities to businesses. It operates through the following segments: U.S. Information Services (USIS), International, Consumer Interactive, and Corporate. The USIS segment provides consumer reports, risk scores, analytical services and decision making capabilities to businesses. The International segment provides credit reports, analytics and decision making services and other value-added risk management services. The Consumer Interactive segment offers solutions that help consumers manage their personal finances and take precautions against identity theft. The Corporate segment provides support services to each segment, holds investments and conducts enterprise functions. The company was founded on February 15, 2012 and is headquartered in Chicago, IL.
Read More on TRU:
- TransUnion Refinances Debt with $1.895 Billion Loan Agreement
- TransUnion Announces Fourth Quarter and Full-Year 2023 Results
- Notable companies reporting before tomorrow’s open
- TRU Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- Bankcard Balances Surpass $1 Trillion as Millennials Increasingly Turn to Cards
