In a recent trading session, the shares of TransUnion (Symbol: TRU) have surged past the average analyst 12-month target price of $74.15, reaching $77.53/share. When a stock hits the target set by an analyst, it prompts two potential reactions from the analyst: to downgrade on valuation or to readjust the target price to a higher level. The response of analysts may also hinge on the underlying business developments that have propelled the stock price upwards. Should the company’s prospects appear bright, it might be time to revise the target price upwards.
TransUnion’s average price target of $74.15 is based on 17 different analyst targets within the Zacks coverage universe. This average serves as a mathematical mean, yet it is crucial to note that individual analysts hold varying opinions. Some set lower targets than the average, with one targeting a price of $55.00, while others express more bullish sentiments, with one setting a high target of $100.00. The standard deviation stands at $11.56.
However, the significance of scrutinizing the average TRU price target lies in the attempt to tap into a “wisdom of crowds” approach, amalgamating the insights of all the individual analysts contributing to the ultimate figure, rather than relying solely on one expert’s perspective. With TRU surpassing the average target price of $74.15/share, investors holding TRU shares have received a strong signal to dedicate fresh time assessing the company and pondering whether $74.15 is merely a milestone on the way to an even higher target, or if the valuation has become overstretched, warranting consideration of reducing exposure. Below is a table portraying the current perspectives of analysts covering TransUnion:
| Recent TRU Analyst Ratings Breakdown | ||||
|---|---|---|---|---|
| » | Current | 1 Month Ago | 2 Months Ago | 3 Months Ago |
| Strong buy ratings: | 10 | 10 | 9 | 9 |
| Buy ratings: | 3 | 3 | 3 | 3 |
| Hold ratings: | 4 | 4 | 4 | 4 |
| Sell ratings: | 1 | 1 | 1 | 1 |
| Strong sell ratings: | 0 | 0 | 0 | 0 |
| Average rating: | 1.75 | 1.75 | 1.79 | 1.79 |
The average rating, as presented in the last row of the table, ranges from 1 to 5, where 1 signifies a Strong Buy and 5 corresponds to a Strong Sell. This article incorporates data furnished by Zacks Investment Research via Quandl.com. Access the latest Zacks research report on TRU — FREE.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
