Stifel analyst Shlomo Rosenbaum has adjusted the price target for Equifax (EFX, Financial), reducing it slightly from $281 to $277, yet maintaining a Buy rating on the stock. This revision follows a first-quarter performance that surpassed expectations.
Despite the positive earnings report, the company faced challenges in its mortgage segment, attributed to rising mortgage rates. The firm observed that while talent improvements progressed into the second quarter, the housing market's slowdown due to climbing rates affected business operations.
Equifax's resilience to economic downturns is perceived as stronger than in the past, but its mortgage division continues to be influenced by fluctuations in the 10-year bond yields. This portion of the business serves as a counter-cyclical component, thus playing a crucial role in its financial outlook.
The decision to lower the price target was also influenced by slightly decreased earnings projections and a narrowing valuation gap compared to its peers in the Information Services sector. Despite these adjustments, the analyst's positive outlook on Equifax remains unchanged.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 18 analysts, the average target price for Equifax Inc (EFX, Financial) is $276.29 with a high estimate of $310.00 and a low estimate of $230.00. The average target implies an upside of 13.53% from the current price of $243.35. More detailed estimate data can be found on the Equifax Inc (EFX) Forecast page.
Based on the consensus recommendation from 22 brokerage firms, Equifax Inc's (EFX, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Equifax Inc (EFX, Financial) in one year is $264.69, suggesting a upside of 8.77% from the current price of $243.35. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Equifax Inc (EFX) Summary page.
