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Investing.com - Citi has reduced its price target on Equifax (NYSE:EFX) to $290.00 from $294.00 while maintaining a Buy rating on the stock. Currently trading at $245.86, the stock has experienced an 8.07% decline over the past week. According to InvestingPro data, seven analysts have recently revised their earnings expectations downward for the upcoming period.
The adjustment follows Equifax’s first half 2025 results, with Citi cutting its 2025 estimated diluted adjusted earnings per share from $7.81 to $7.43 and lowering its 2025 adjusted EBITDA forecast from $2,015 million to $1,944 million. The stock currently trades at a P/E ratio of 47.82x, which InvestingPro analysis indicates is high relative to near-term earnings growth.
Citi identified negative mortgage volume expectations as a key factor in the reduction, revising its forecast from flat to negative low double-digit percentage, which primarily drives the decrease in USIS 2025 estimated adjusted EBITDA from $742 million to $723 million.
The research firm also noted that Equifax management has reduced its guidance for Workforce Solutions organic revenue growth from 7% at first quarter 2025 to 5% at second quarter 2025, mainly due to government revenues materializing more slowly than previously anticipated.
This slower growth in the Workforce Solutions segment impacts Citi’s 2026 adjusted diluted EPS forecast, which has been reduced from $10.52 to $9.84, though the price target reduction was partially offset by an increase in Citi’s Business Services average EV/EBIT multiple from 12.6x to 13.7x. Despite these challenges, Equifax maintains strong fundamentals with a 56.66% gross profit margin and has consistently paid dividends for 55 consecutive years. For deeper insights and additional ProTips, visit InvestingPro.
In other recent news, Equifax reported its highest-ever quarterly revenue in the second quarter of 2025, with earnings per share of $1.53, surpassing the forecast of $1.50. The company achieved revenue of $1.54 billion, exceeding expectations by 1.99%, and noted growth in its Workforce Solutions and International segments. However, disappointing third-quarter guidance and adjustments to the 2025 outlook due to foreign exchange concerns have overshadowed these results. BMO Capital lowered its price target for Equifax to $260, maintaining a Market Perform rating, while UBS reduced its target to $278, keeping a Buy rating. Despite the earnings beat, Equifax shares experienced a decline, reflecting mixed investor sentiment. Stifel reiterated its Buy rating with a $295 price target, expressing confidence in future government sales, although they have not materialized as quickly as anticipated. These developments provide investors with a comprehensive view of Equifax’s recent performance and analyst perspectives.
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