Equifax Buy Rating Affirmed Amid Mortgage Recovery and Conservative Guidance

Analyst Heather Balsky of Bank of America Securities reiterated a Buy rating on Equifax (EFX – Research Report), retaining the price target of $300.00.

Heather Balsky has given his Buy rating due to a combination of factors including the anticipated recovery of the mortgage market and Equifax’s cautious yet potentially conservative guidance for the year 2024. Balsky’s confidence in a Buy rating is further reinforced by the projection of lower interest rates by the bank’s US Economics team, which could stimulate a full recovery in the mortgage sector. Additionally, there’s an expectation of stability in the consumer lending environment for the first quarter of 2024, which contrasts management’s expectations of further deterioration.
Moreover, Balsky has raised the earnings per share (EPS) forecast for Equifax, citing a better-than-expected mortgage market performance. This adjustment is based on mortgage inquiry declines that are less severe than initially guided by Equifax, alongside anticipated sales growth driven by higher pricing, new product introductions, and increased market penetration. The revised EPS estimate places Balsky at the high end of the guidance range and above consensus, underpinning the belief that Equifax has set conservative targets that allow room for upward revisions during the year.

In another report released on April 9, Stifel Nicolaus also maintained a Buy rating on the stock with a $295.00 price target.

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Equifax (EFX) Company Description:

Equifax, Inc. engages in the provision of information solutions and human resources business process outsourcing services. It operates through the following business segments: U.S. Information Solutions, Workforce Solutions, International, and Global Consumer Solutions. The U.S. Information Solutions segment includes consumer and commercial information services, mortgage loan origination information, financial marketing services, and identity management. The Workforce Solutions segment covers employment, income, and social security number verification services as well as complementary payroll-based transaction and employment tax management services. The International segment offers information, technology, and services to support debt collections and recovery management in Canada, Europe, Latin America, and Asia Pacific. The Global Consumer Solutions segment provides consumer and credit information to resellers. The company was founded by Cator Woolford and Guy Woolford in 1899 and is headquartered in Atlanta, GA.