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Investing.com - BMO Capital has reduced its price target on Equifax (NYSE:EFX) to $260.00 from $280.00 while maintaining a Market Perform rating on the stock. The company’s shares, currently trading at $244.18, have declined over 8% in the past week, with InvestingPro data indicating oversold conditions.
The credit reporting agency delivered what BMO described as a "solid quarter" with notable top-line strength in its Employer Workforce Solutions (EWS) and U.S. Information Solutions (USIS) segments.
Despite the positive performance in these areas, Equifax management lowered its growth forecast for the EWS division, citing near-term challenges in its Government and Talent solutions. The company simultaneously raised expectations for its USIS business.
BMO Capital noted that higher corporate costs also negatively impacted Equifax’s overall forecast, contributing to the decision to lower the price target.
Regarding the company’s Vantage Score product, Equifax management indicated that implementation would "certainly take time" due to the complexity of potential industry changes, according to BMO’s research note.
In other recent news, Equifax reported its highest-ever quarterly revenue for the second quarter of 2025, with earnings per share of $1.53, surpassing the projected $1.50. The company achieved a revenue of $1.54 billion, exceeding expectations by 1.99%. Despite these positive results, Equifax’s shares experienced a decline of 5.65% in pre-market trading, indicating mixed investor sentiment. UBS adjusted its price target for Equifax to $278 from $315, maintaining a Buy rating, citing disappointing third-quarter guidance and adjustments in the 2025 outlook due to foreign exchange factors. Stifel also reiterated its Buy rating with a $295 price target, expressing some disappointment over the slower-than-expected materialization of government sales but remaining optimistic about future prospects. These recent developments highlight the ongoing challenges and opportunities facing Equifax as it navigates market expectations and operational growth.
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