BMO Capital Initiates Coverage on Outperform, Sets Price Target at $115.

BMO Capital Initiates Coverage on Outperform, Sets Price Target at $115.

BMO Capital Markets has initiated coverage on TransUnion (NYSE: TRU) with an Outperform rating and a $115 price target. This move reflects BMO's optimistic outlook on the company's financial health and growth prospects. The price target represents significant upside potential from the current price of $93.61.

BMO Capital highlighted TransUnion's strong market position as one of the three public credit bureaus offering credit risk management, marketing, identity verification, and fraud detection services. The company's impressive 59.8% gross profit margin and healthy current ratio of 2.05 underscore its robust financial performance. Despite higher interest rates impacting lending volumes, TransUnion is gradually returning to a more normalized environment.

The research firm noted that TransUnion is undervalued, trading at a 4x turn discount to the Credit Bureau median on EV/EBITDA, the greatest discount since its initial public offering in 2015. BMO Capital's out-year estimates for TransUnion exceed current consensus expectations, suggesting stronger future performance than the market anticipates.

In other recent news, TransUnion has announced a quarterly dividend of $0.115 per share, payable on June 6, 2025, to shareholders recorded by May 22, 2025. This announcement aligns with the company’s ongoing commitment to delivering value to its shareholders. Additionally, TransUnion successfully concluded its Annual Meeting of Stockholders, with shareholders approving all proposals, including the election of ten directors and the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for 2025.

Morgan Stanley has adjusted its price target for TransUnion to $120 from $127, maintaining an Overweight rating. This reflects a cautious approach due to potential macroeconomic challenges, but analysts remain optimistic about the company’s fundamentals and growth prospects. RBC Capital has reiterated an Outperform rating for TransUnion, with a price target of $121, anticipating robust growth in its U.S. Financial Services segment and emerging verticals like Insurance.

The firm also projects significant mortgage revenue growth despite a potential decline in mortgage inquiries. TransUnion’s geographic performance is expected to vary, with notable improvements anticipated in India. These developments indicate a positive outlook for the company amid broader sector concerns.

References:
[1] https://www.investing.com/news/analyst-ratings/bmo-capital-initiates-transunion-stock-with-outperform-rating-115-target-93CH-4129016
[2] https://www.cnbc.com/2025/07/10/stock-calls-by-analysts-like-nvidia-thursday.html