Equifax stock price target cut, buy rating on revised outlook

On Wednesday, Equifax Inc . (NYSE:EFX) shares experienced a revision in its financial outlook as Jefferies analysts adjusted the company's price target. The new target has been set at $300, down from the previous $340, while the firm continues to recommend the stock with a Buy rating.

According to InvestingPro data, analyst targets for Equifax range from $271 to $357, with the stock currently trading at $252.34. InvestingPro analysis suggests the stock is slightly overvalued at current levels.

The adjustment comes as Jefferies analysts forecast that Equifax's results will align with the company's fourth-quarter guidance. The analysts' revenue estimate for the fourth quarter remains unchanged at $1,447 million, marking a 9.1% year-over-year increase. This estimate is slightly higher than the consensus of $1,443 million and falls near the midpoint of the company's guidance range of $1,438 to $1,458 million.

InvestingPro data shows Equifax maintains impressive gross profit margins of 55.53% and has achieved revenue growth of 8.79% over the last twelve months. For deeper insights into Equifax's financial health and valuation metrics, subscribers can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The company's management had anticipated that fourth-quarter mortgage inquiries would rise by approximately 9% year-over-year. According to Jefferies, the observed mortgage volume trends during the quarter appear to support this expectation. With Equifax's next earnings report scheduled for February 5, 2025, investors can access detailed financial analysis and 12+ additional ProTips through InvestingPro.

However, the analysts have made a slight downward revision to their adjusted earnings per share (EPS) estimate, now predicting $2.08 compared to their previous estimate of $2.13. This forecast sits at the lower end of management's guidance, which ranges from $2.08 to $2.18, and is also slightly below the consensus estimate of $2.10. The reduced EPS estimate is attributed to a modest decrease in the expected margin outlook.

Equifax has not publicly responded to the revised price target or the analysts' comments at the time of reporting. The company's financial performance in the upcoming earnings report will provide further insight into the validity of these projections.

In other recent news, Equifax Information Services (NASDAQ:III) has agreed to a $725,000 settlement with the New York Attorney General for inaccurately reporting the credit scores of tens of thousands of New Yorkers due to a coding error. These inaccuracies led to inflated loan costs and other product prices for consumers.

Furthermore, Enerflex Ltd. has announced the retirement of two board members, effective January 1, 2025, as part of the company's Board Retirement Policy. In the world of financial analysis, Equifax experienced a series of analyst adjustments. Wolfe Research downgraded Equifax's stock from Outperform to Peerperform due to a revised outlook on the mortgage sector for 2025.

Conversely, Morgan Stanley (NYSE:MS) upgraded Equifax from Equalweight to Overweight, attributing the change to improved consumer credit conditions and a favorable regulatory environment. However, Oppenheimer reduced its stock price target for Equifax from $315.00 to $286.00, maintaining an Outperform rating. These are recent developments that investors should keep in mind when considering these companies.

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