Goldman Sachs analyst George Tong has maintained their neutral stance on TRU stock, giving a Hold rating today.
George Tong has given his Hold rating due to a combination of factors concerning TransUnion’s performance and market position. The company’s first-quarter results surpassed expectations, demonstrating revenue, margin, and earnings per share (EPS) growth. This was primarily driven by a significant uptick in mortgage revenue growth, which outpaced initial projections and led to an increased growth outlook for the year. Despite the strong showing in the mortgage sector, which constitutes a modest portion of TransUnion’s last twelve months (LTM) revenue, the overall credit origination volumes in other areas such as cards, consumer loans, and autos remain tepid, although stable when compared to the previous quarter.
The international segment of TransUnion’s business remains a strong performer, continuing to achieve double-digit growth. Nevertheless, the outlook for non-mortgage revenue growth is conservative, with expectations of only 2-3.5% growth by 2024. This conservative stance reflects the assumption that origination volumes may not show significant improvement for the rest of the year. Tong’s assessment suggests that while TransUnion exhibits strength in specific areas, there are also persisting softness in non-mortgage revenues and uncertainties related to macroeconomic conditions and interest rates. These mixed signals in the company’s performance and prospects are the basis of Tong’s Hold rating, signaling a cautious approach to the stock.
In another report released today, Barclays also maintained a Hold rating on the stock with a $75.00 price target.
Based on the recent corporate insider activity of 70 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling 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.
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