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Investing.com - UBS lowered its price target on Equifax (NYSE:EFX) to $278.00 from $315.00 on Wednesday, while maintaining a Buy rating on the stock. According to InvestingPro data, the company currently trades at a P/E ratio of 47.1x and commands a market capitalization of $30.27 billion.
The credit reporting company’s shares fell approximately 7% following the announcement, exceeding the implied 4.5% move, as disappointing third-quarter guidance and foreign exchange-induced 2025 outlook adjustments overshadowed second-quarter earnings beat. InvestingPro analysis indicates the stock is currently in oversold territory based on RSI readings, with shares down over 8% in the past week.
Equifax Workforce Solutions (EWS), which represents about 45% of company revenue, saw revenue growth accelerate by 500 basis points to 8% year-over-year, driven by government and consumer lending growth. However, full-year EWS guidance was reduced by 200 basis points to approximately 5% year-over-year due to weaker I-9 and onboarding revenue following slower hiring in July amid corporate caution.
The company increased its U.S. Information Solutions (USIS) 2025 growth forecast by 200 basis points to approximately 7%, partially driven by mortgage revenue outperformance of 20% year-over-year despite no change in mortgage market outlook. Equifax also reported share gains in pre-qualification and pre-approval products.
UBS cited an uncertain macroeconomic environment and elevated earnings volatility as reasons for the price target reduction, while acknowledging Equifax’s strong free cash flow and $190 million in capital return during the second quarter, which included $127 million in share buybacks and $62 million in dividends. Notably, InvestingPro data shows the company has maintained dividend payments for 55 consecutive years, with a current dividend yield of 0.84% and impressive gross profit margins of 56.44%. For deeper insights into Equifax’s valuation and financial health metrics, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
In other recent news, Equifax Inc . reported its highest-ever quarterly revenue for the second quarter of 2025, with earnings per share reaching $1.53, surpassing the forecast of $1.50. The company achieved a revenue of $1.54 billion, exceeding expectations by 1.99%, and noted ongoing growth in its Workforce Solutions and International segments. Despite these positive financial results, shares saw a decline of 5.65% in pre-market trading, indicating mixed investor sentiment. Additionally, Stifel has reiterated its Buy rating on Equifax stock, maintaining a price target of $295. The firm expressed some disappointment regarding the pace of government sales but remains optimistic that Equifax will eventually secure these deals. These developments highlight recent activities and assessments concerning Equifax.
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