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UBS reiterated its Buy rating and $315.00 price target on Equifax (NYSE:EFX) Wednesday. According to InvestingPro data, the stock is currently trading above its Fair Value, with 9 analysts recently revising their earnings estimates upward. The firm maintained its positive outlook after Equifax reaffirmed its long-term growth framework of 8-12%, which exceeded UBS’s expectation that the company might shift back to a 7-10% range.
The rating reflects UBS’s confidence in Equifax’s ability to execute its growth strategy through cloud transformation, which should support more agile product innovation. With impressive gross profit margins of 56.44% and revenue growth of 7.12% over the last twelve months, the firm highlighted product integrations between USIS (33% of revenue) and EWS (approximately 45% of revenue), along with international expansion potential in a market exceeding $50 billion.
UBS noted the market remains cautious about mortgage recovery prospects, with approximately $1.2 billion in potential mortgage revenue projected from 2027-2028 to 2030. The current framework base case does not include a full mortgage recovery, but rather assumes 2-3% U.S. mortgage market growth with no change in price or product.
In case of a full mortgage recovery, UBS suggests Equifax could see a 27% upside on 2030 earnings per share to approximately $19 from $15, which would be 40% above the firm’s current 2029 EPS estimate.
UBS believes Equifax is well-positioned to execute its capital allocation framework of approximately $1.35 billion in 2025 and more than $3.0 billion by 2030, supporting the maintained Buy rating and price target. InvestingPro analysis reveals the company has maintained dividend payments for 55 consecutive years, demonstrating strong financial stability. For deeper insights into Equifax’s valuation and growth prospects, access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
In other recent news, Equifax Inc . reported its first-quarter 2025 earnings, surpassing revenue expectations with a total of $1.442 billion, a $37 million increase over forecasts. Despite a lower-than-expected EPS of $1.06, the adjusted EPS stood at $1.53, surpassing guidance expectations. Equifax has also made headlines with the launch of its AI-powered credit score planning tool, Optimal Path, designed to assist consumers in improving their credit scores through personalized plans. Analyst firms have shown confidence in Equifax’s strategic direction, with Stifel and Jefferies both raising their price targets to $295 and $290, respectively, while maintaining a Buy rating on the stock. These upgrades are attributed to Equifax’s near-completion of its cloud transformation and its expected resilience in revenue growth. Additionally, Equifax is maintaining its 2025 guidance of 6% revenue growth, supported by strategic initiatives and its cloud capabilities. The company is also exploring opportunities in the government sector, particularly in addressing improper payments, which could provide further growth avenues. These developments reflect Equifax’s ongoing efforts to strengthen its market position and enhance its technological infrastructure.
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