Analyst Toni Kaplan from Morgan Stanley maintained a Buy rating on TransUnion and keeping the price target at $122.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 55% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Toni Kaplan has given his Buy rating due to a combination of factors that highlight the resilience and potential of TransUnion despite recent market developments. The announcement by Fair Isaac to offer an alternative method for delivering credit scores has introduced some uncertainty, but Kaplan emphasizes that the credit bureaus, including TransUnion, still hold significant value due to their ownership of proprietary credit data. This data is essential for calculating credit scores, and without it, the new delivery method cannot function effectively.
Kaplan also notes that while the market reacted negatively to the announcement, causing a drop in TransUnion’s stock price, this reaction appears to be exaggerated. The credit bureaus are expected to respond strategically, potentially by promoting their own Vantage Score, which could mitigate the impact of Fair Isaac’s move. Furthermore, the current valuation of TransUnion’s stock is seen as attractive, with expectations of improved consumer credit conditions and a favorable regulatory environment contributing to the positive outlook. These factors collectively support the Buy rating for TransUnion.
Kaplan covers the Industrials sector, focusing on stocks such as Cintas, Equifax, and Waste Management. According to TipRanks, Kaplan has an average return of 2.4% and a 55.73% success rate on recommended stocks.
In another report released on September 20, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $101.00 price target.