BofA Securities upgraded TransUnion (NYSE:TRU) to Neutral from Underperform on Monday and raised its 12-month price target to $83 from $80. The bank said growing clarity around the company’s strategic growth drivers supported the more constructive view.
In a note accompanying the move, BofA analyst Joshua Dennerlein highlighted several factors behind the decision. The firm pointed to stabilizing trends in India, the pending acquisition of TransUnion de Mexico and improving momentum in fraud and marketing solutions running on TransUnion’s OneTRU platform. BofA also cited the company’s cloud-based migration as a contributor to clearer multi-year visibility on growth and costs.
Those factors, BofA said, make the risk-reward profile for TransUnion appear more balanced. The firm flagged the company’s upcoming investor day as a possible catalyst - particularly if management is able to provide more explicit near-term clarity on margin expansion relative to peers.
BofA revised its adjusted earnings per share estimates upward, setting 2026 at $4.71 and 2027 at $5.56. The revisions reflect what the analyst described as improved operating leverage and enhanced clarity around the post-migration cost structure and growth at the segment level.
TransUnion’s own recent quarterly performance provides context for the analyst activity. The company reported fourth-quarter 2025 results that exceeded expectations, delivering EPS of $1.07 versus the $1.03 consensus and revenue of $1.17 billion compared with $1.13 billion anticipated.
Following the quarterly report, other brokerages adjusted their price targets while maintaining favorable ratings. BMO Capital trimmed its target to $85.00 from $105.00, citing the effect of FICO pass-through costs on adjusted margins and EPS guidance, but kept an Outperform rating. Needham cut its target to $95.00 from $115.00, while maintaining a Buy rating and noting strong performance in mortgage and consumer lending segments.
These varied analyst moves underscore a mixed outlook for fiscal 2026. BofA’s upgrade leaned on the view that clearer visibility into international performance, growth in newer verticals and the benefits of a cloud migration together improve the medium-term outlook for the credit reporting and information services company.
Investors are watching closely to see whether the company’s investor day and subsequent disclosures will validate expectations for margin expansion and sustained segment-level growth. The balance of stronger-than-expected quarterly results and lowered price targets by some analysts highlights both the progress and the uncertainties currently surrounding TransUnion.
Key points
- BofA upgraded TransUnion to Neutral from Underperform and raised its price target to $83 from $80, citing clearer multi-year growth visibility.
- BofA increased adjusted EPS forecasts to $4.71 for 2026 and $5.56 for 2027, reflecting expected operating leverage and post-migration cost clarity.
- TransUnion reported better-than-expected Q4 2025 results with EPS of $1.07 and revenue of $1.17 billion; other analysts reduced price targets but kept positive ratings.
Risks and uncertainties
- Mixed guidance for fiscal 2026 creates uncertainty around near-term performance and investor expectations - this affects the credit reporting and information services sectors as well as financial markets that price equities based on forward guidance.
- Pass-through costs, such as those tied to FICO scoring, may pressure adjusted margins and EPS guidance, as noted by at least one analyst - a risk for margin-sensitive sectors like data-driven financial services.
- Execution risk tied to cloud migration and realization of operating leverage remains a material uncertainty until management provides clearer post-migration cost structure details - this impacts technology and information services segments.