TransUnion (TRU – Research Report), the Industrials sector company, was revisited by a Wall Street analyst today. Analyst Joshua Dennerlein from Bank of America Securities reiterated a Sell rating on the stock and has a $84.00 price target.
Joshua Dennerlein’s rating is based on several factors, primarily stemming from TransUnion’s recent financial performance and strategic direction. Despite TransUnion’s first-quarter earnings surpassing expectations, the company did not revise its guidance upwards, suggesting a cautious outlook for the remainder of the year. Dennerlein notes that the company’s full-year guidance might be overly conservative if current macroeconomic conditions persist.
Additionally, TransUnion is transitioning from a phase of heavy investment to one focused on returning capital to shareholders. While this shift is positive, with the initiation of share repurchases and a dividend increase, the company’s leverage remains higher than its target. Furthermore, Dennerlein has adjusted earnings estimates slightly higher due to the first-quarter beat but maintains a cautious stance on revenue growth and EBITDA margins due to costs associated with recent mergers and acquisitions. These factors collectively contribute to the Sell rating, reflecting concerns about the pace of international growth and the company’s financial leverage.