Market Overview

Barclays Upgrades TransUnion, Hits Pause On Fair Isaac

Share:
Barclays Upgrades TransUnion, Hits Pause On Fair Isaac

Barclays upgraded TransUnion (NYSE: TRU) shares from Equal Weight to Overweight, although there is no change in the price target of $37. However, analyst Manav Patnaik has downgraded Fair Isaac Corporation (NYSE: FICO) from Overweight to Equal Weight with a price tag of $135 on the stock.

"Signalling our belief that the credit bureaus will continue to outperform the market and benefit from a 'scarcity value' in Industrials, we upgrade TRU to OW. We have been constructive with our commentary lately, and with 12 percent upside to our $37 price target," the analyst said in a research note to clients.

Related Link: PureFunds Gets Techy With Fintech, Health-Tech ETFs

The brokerage thinks the recent pause should be taken as buying opportunity in TransUnion shares after a strong demonstration by its management during the financials conference last week.

As far as Fair Isaac is concerned, Patnaik thinks that the stock has delivered 78 percent return since 2015 compared to S&P 500 gain of 4 percent. Therefore, he prefers to step to the sidelines on the stock, elaborating that the stock has already priced D2C scores.

The brokerage expects the next upside to come from Decision Management Suite. However, Barclays wants more evidence of tangible progress to be more constructive on it. "Additionally, given our discussions with the CEO at the Financials Conference last week, significant investments to support growth will continue, which could mean that 2017 might not be the "inflection point" that some investors are hoping for (at least at 25x CY18 P/E)," the analyst concluded.

At time of writing, Fair Issac was down 1.64 percent at $126.76; TransUnion was up 1.03 percent at $33.44.

Full ratings data available on Benzinga Pro.

Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!

 

Related Articles (TRU + FICO)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas News Upgrades Downgrades Price Target Analyst Ratings Movers Best of Benzinga

Latest Ratings

StockFirmActionPT
CSCOWolfe ResearchDowngrades42.0
NKEBarclaysMaintains132.0
GILDRBC CapitalMaintains86.0
JBLCitigroupMaintains45.0
LOWOppenheimerDowngrades180.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com