BofA raised the firm’s price target on TransUnion to $47 from $44 and keeps an Underperform rating on the shares after the company announced a multi-year technology transformation and cost savings program. While the firm thinks the cost saving program is a positive for EPS and the stock, it also believes upfront implementation costs will weigh on near-term cash flow and debt repayment. The firm is raising its 2024 and 2025 EPS estimates by 5% and 7%, respectively, on cost savings, but keeps an Underperform rating as it worries about a challenging consumer lending environment in 2024.
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