BMO Capital on Friday lowered its price target on TransUnion (NYSE:TRU) to $85.00 from $105.00, while continuing to carry an Outperform rating on the credit reporting company. The research house indicated the revision reflects a more cautious valuation after recent trading activity, even as it acknowledged the firm delivered a strong quarterly result.
According to BMO, TransUnion produced a "solid beat" in the quarter, but the company’s adjusted margin and fiscal 2026 EPS guidance were pressured by FICO pass-through costs. BMO drew a parallel to a similar impact noted by a competitor in its 2026 guidance, signaling that the pass-through expense is influencing near-term profitability expectations across the credit reporting peer group.
The research note called out guidance for TransUnion’s Emerging Verticals and Consumer Interactive segments as "disappointing" relative to the momentum those businesses showed in the fourth quarter of 2025. BMO added that management’s guidance tendency - which the firm described as typically conservative - means the outlook could be more cautious than actual performance ultimately proves.
BMO also emphasized management’s activity in the share-repurchase program during the period, noting that buybacks accelerated in response to recent weakness in the stock price. The firm characterized TransUnion’s capital allocation plan for 2026 as a balance between trimming leverage related to a recent acquisition and continuing to return capital to shareholders through repurchases.
Part of BMO’s lower target stems from modest reductions in its financial estimates, which the firm said were driven in part by updated trading multiples. Those estimate adjustments contributed to the change in the price target despite the company’s recent operational strength.
Separately, TransUnion reported fourth-quarter 2025 results that beat consensus forecasts. The company posted adjusted earnings per share of $1.07, above the $1.03 consensus estimate, and revenue of $1.17 billion, topping the $1.13 billion expected. Management attributed the outperformance primarily to strong results in the mortgage and consumer lending segments.
Following the results and the company’s mixed guidance for fiscal 2026, Needham lowered its price target on TransUnion from $115.00 to $95.00 but kept a Buy rating. The firm’s revision reflected caution about the outlook even as it acknowledged the company’s ability to exceed expectations in key areas.
Summary: BMO trims TransUnion’s price target to $85 while retaining an Outperform rating after a quarterly beat; guidance pressures from FICO pass-through costs and softer segment outlooks prompted estimate cuts. TransUnion exceeded Q4 2025 EPS and revenue expectations, and Needham also lowered its target to $95 while maintaining a Buy rating.
- Key points:
- BMO reduced its price target from $105 to $85 but maintained an Outperform rating.
- Q4 2025 results beat expectations: EPS $1.07 vs $1.03 expected; revenue $1.17 billion vs $1.13 billion expected.
- Needham cut its target to $95 from $115 while keeping a Buy rating; management repurchased shares amid recent stock weakness.
- Risks and uncertainties:
- FICO pass-through costs are weighing on adjusted margins and EPS guidance - risk to profitability in the credit reporting sector.
- Weaker guidance for Emerging Verticals and Consumer Interactive introduces uncertainty about near-term revenue growth in those segments.
- Valuation sensitivity to trading multiples means price targets can shift with market sentiment, affecting investor expectations across financials and information services.