Bank of America Securities analyst Heather Balsky upgraded TransUnion (NYSE:TRU) to Neutral from Underperform and raised the price target to $90 from $65.
The analyst is positive amid a steadying consumer lending environment and expects sales upside in the 2024 guidance across international, insurance, and mortgage.
The company has "greater exigency to meet or beat" following an unpredictable and volatile business in 2023, Balsky says.
TransUnion has left room to beat on its sales plans for the big insurers' returning to marketing, momentum in overseas business (estimates a growth of 12% vs. high-single-digit guidance), and mortgage recovery (estimated mortgage revenues +30% vs. +25% guide).
Moreover, Balsky projects less uncertainty related to consumer lending this year, with the prospect of a soft landing and Fed rate cuts being positives.
Notably, BofA's US economics team projects 2.1% GDP growth (raised from 1.2% prior) in 2024 and three rate cuts, with the first expected in June.
The analyst estimates EPS of $3.75 (vs. consensus of $3.71) in 2024, $4.46 (vs. street view of $4.42) in 2025, and $5.05 (cons.: $5.03) in 2026.
Investors can gain exposure to the stock via VanEck Morningstar Wide Moat ETF (BATS:MOAT) and Nuveen ESG Mid-Cap Growth ETF (BATS:NUMG).
Price Action: TRU shares are trading lower by 0.41% at $79.47 on the last check Monday.
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