Seaport Global Securities initiates Equifax stock with Neutral rating

Published 01/10/2025, 13:24
Seaport Global Securities initiates Equifax stock with Neutral rating

Investing.com - Seaport Global Securities initiated coverage of Equifax (NYSE:EFX) with a Neutral rating on Wednesday. According to InvestingPro data, the company currently trades at a P/E ratio of 49.9x and maintains strong gross profit margins of 56.7%.

The research firm cited Equifax’s position as one of the three global credit bureaus with a leading share in the mortgage market and verification of income and employment (VOIE) services. The company has demonstrated its financial stability by maintaining dividend payments for 55 consecutive years, as noted in InvestingPro’s analysis.

Despite acknowledging the strength of Equifax’s business model, Seaport Global Securities indicated it does not see any immediate catalysts for the stock.

The firm specifically noted it is waiting for a turnaround in the mortgage market before taking a more positive stance on Equifax shares.

Seaport Global Securities also expressed caution regarding Equifax’s financial estimates for the second half of 2025, pointing to potential downside risk to the company’s performance numbers.

In other recent news, Equifax has announced a quarterly dividend of $0.50 per share, maintaining a tradition of consistent cash dividend payments for over a century. Meanwhile, several analyst firms have adjusted their outlooks on the company. Citi has lowered its price target for Equifax to $290, citing concerns over mortgage volumes and reducing its earnings and EBITDA forecasts for 2025. BMO Capital also lowered its price target to $260, though it noted strength in Equifax’s Employer Workforce Solutions and U.S. Information Solutions segments. UBS adjusted its price target to $278 due to mixed outlooks, despite a second-quarter earnings beat, and highlighted disappointing third-quarter guidance as a concern. Stifel, however, maintained its Buy rating and $295 price target, expressing confidence in future government sales materializing. These developments reflect a mix of optimism and caution among analysts regarding Equifax’s future performance.

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