RBC Capital on TransUnion (TRU): 'Setup for Beat and Raise'

RBC Capital analyst Ashish Sabadra reiterated an Outperform rating and $121.00 price target on TransUnion (NYSE: TRU).

The analyst commented: "Setup for Beat and Raise. TRU's U.S. Financial Services ex-mortgage segment accelerated to 9% growth in 1Q25, and we expect it to sustain robust MSD-HSD growth in 2Q25, driven by stable growth, easier comparisons, and resilience despite concerns about a potential slowdown in consumer spending. We believe upside exists to the anticipated MSD decline in mortgage inquiries, which could further support 20%+ mortgage revenue growth. In its emerging verticals, sustained double-digit growth in Insurance should be a key contributor. Additionally, TRU expects India's growth to improve from 1% in 1Q25 to MSD in 2Q25, setting the stage for double-digit growth in 3Q25. Meanwhile, growth in the UK and Canada could moderate slightly to MSD due to tariff concerns but should remain above industry levels. On margins, TRU guided for a margin decline in 2Q25 due to the timing of investments. However, we anticipate margin expansion in 2H25 as this timing effect reverses."

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 $89.90 yesterday.

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