TransUnion's 2024 Guidance Has Upside, Says Bullish Analyst: 'P&C Insurers Are Spending More'

TransUnion TRU in May reported its first-quarter earnings ahead of expectations.

The Chicago-based company is poised to benefit from continued stability in consumer lending and room for upside in emerging verticals, according to Bank of America Securities.

The TransUnion Analyst: Heather Balsky upgraded the rating for TransUnion from Neutral to Buy, with a price target of $92.

The TransUnion Thesis: With insurance leading the way, strength in emerging verticals is likely to drive earnings upside for the company, Balsky said in the upgrade note.

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"Larger P&C insurers are already starting to spend more on marketing, a positive for TRU," the analyst wrote. Although the company reported organic EV sales growth of 4% for the first quarter, this did not flow through to its guidance, she added.

TransUnioncould raise its 2024 organic sales, ex-mortgage, growth guidance, Balsky further stated. Investor sentiment may also be boosted by the company's margin expansion due to cost-savings, she added.

The stock is down 11% since mid-May, which lends further upside.

TRU Price Action: Shares of TransUnion had risen by 3.10% to $73.52 at the time of publication on Thursday.

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