Deutsche Bank Reiterates Buy on TransUnion (TRU) Following $19.4M Settlement with CFPB
Get Alerts TRU Hot Sheet
Rating Summary:
15 Buy, 6 Hold, 0 Sell
Rating Trend: Down
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Join SI Premium – FREE
Deutsche Bank reiterated a Buy rating and $38.00 price target on TransUnion (NYSE: TRU) following the company's announced civil investigation settlement with the Consumer Financial Protection Bureau. The company has agreed to change their advertising + marketing practices and develop a compliance plan subject to CFPB approval. The $19.4m settlement includes $13.9m for customer relief, $3.0m penalty payable to the CFPB + a $2.5m charge for compliance + legal costs.
Analyst Kevin McVeigh commented, "As expected, TransUnion announced AMC on THU [12/29] they settled a civil investigation with the Consumer Financial Protection Bureau regarding the company’s advertising + marketing practices relating to the sale of consumer credit products. The settlement resulted in a $19.4m charge to be recognized during Q416. As such, the company has agreed to change their advertising + marketing practices and develop a compliance plan subject to CFPB approval. Importantly, we don’t see this settlement as having a material impact on the company’s fundamentals. As such, we reiterate our Buy rating + $38 PT due to TRU’s new products and differentiated end markets combined macro environment helping TRU generate organic revenue growth around its 10% target."
For an analyst ratings summary and ratings history on TransUnion click here. For more ratings news on TransUnion click here.
Shares of TransUnion closed at $30.75 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- TransUnion (TRU) Provides Update on Operations Reorganization
- Amphenol (APH) PT Raised to $130 at Evercore ISI, Remains Top Pick
- Equity Residential (EQR) PT Raised to $70 at Evercore ISI
Create E-mail Alert Related Categories
Analyst Comments, LitigationRelated Entities
Deutsche BankSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!