TransUnion (TRU) Stock Forecast & Price Target

TransUnion has demonstrated robust financial performance, reporting third-quarter revenue of $1.17 billion, which represents a year-over-year increase of 7.8% and exceeds both internal estimates and market consensus. The company anticipates continued strong growth, particularly in international markets such as India, where expectations are set for high-teens growth, and overall FY25 revenue guidance has been raised to a range of $4.524 to $4.544 billion. Additionally, significant momentum in financial services, driven by impressive growth in mortgage and consumer lending, alongside efforts to reduce leverage, suggests improved cash flow conversion and earnings per share potential.

TransUnion's stock outlook is negatively impacted by concerns of a prolonged economic downturn, which may lead to a significant reduction in demand for the company's services and, consequently, hinder revenue growth. The recent trend of declining mortgage rates, now approximately 20 basis points lower than the levels reported during the second quarter, further exacerbates the risk to credit inquiry volumes, both domestically and internationally. These factors contribute to the potential downside risk to revenue estimates for TransUnion, signaling challenges in maintaining financial performance in the near term.