Equifax stock rating reiterated at Outperform by RBC on cloud growth

Published 18/06/2025, 16:16
Equifax stock rating reiterated at Outperform by RBC on cloud growth

RBC Capital maintained its Outperform rating and $300.00 price target on Equifax (NYSE:EFX) Wednesday, aligning with the broader analyst consensus. According to InvestingPro data, 9 analysts have recently revised their earnings estimates upward, with price targets ranging from $255 to $315. The firm cited the company’s completed cloud transformation efforts, which now allow Equifax to focus on growth and innovation.

The credit reporting agency, currently valued at $31.91 billion, has established long-term financial framework targets and introduced a 2030 earnings per share target of $15, which could reach $19 if the mortgage market recovers. RBC noted that Equifax is leveraging its cloud and data infrastructure to develop new AI solutions. The company maintains impressive gross profit margins of 56.44% and has consistently paid dividends for 55 consecutive years.

These technological advancements are expected to drive market penetration and help Equifax gain market share in key growth segments, building on its current revenue growth of 7.12%. Government services and identity and fraud prevention were specifically highlighted as important growth areas for the company. For deeper insights into Equifax’s growth metrics and financial health, check out the comprehensive Pro Research Report available on InvestingPro.

RBC emphasized that Equifax does not require a mortgage market recovery to achieve its baseline long-term targets. The firm’s analysis indicates that the company’s current strategy is sufficient to meet its financial goals.

A potential mortgage market recovery would represent upside to company estimates and provide additional tailwind for shareholder returns, according to RBC’s assessment of Equifax’s outlook.

In other recent news, Equifax has received significant attention from multiple analyst firms. UBS reiterated its Buy rating for Equifax, maintaining a $315 price target, emphasizing the company’s long-term growth framework and potential for international expansion. Stifel also maintained a Buy rating while raising its price target to $295, highlighting Equifax’s nearly complete cloud transformation and improved client receptivity. Jefferies followed suit by increasing its price target to $290 from $260, citing confidence in Equifax’s ability to sustain revenue growth amid economic uncertainties.

Additionally, Equifax introduced a new AI-powered credit score planning tool called Optimal Path, designed to assist consumers with personalized credit score improvement plans. This tool leverages Equifax’s cloud and AI capabilities to provide actionable credit score guidance. Meanwhile, the broader credit reporting sector, including Equifax, faced some market concerns following comments about potential changes in the mortgage credit scoring landscape. Despite these concerns, analysts remain optimistic about Equifax’s prospects, with the company well-positioned to capitalize on future market opportunities.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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