Stifel raises Equifax stock price target to $295 on cloud transformation

Stifel raised its price target on Equifax (NYSE:EFX) to $295.00 from $277.00 on Wednesday, while maintaining a Buy rating on the credit reporting agency’s stock. The company, currently valued at $31.79 billion, has received positive attention from analysts, with 9 analysts recently revising their earnings estimates upward according to InvestingPro data.

The price target increase follows Equifax’s analyst day, where the company revealed its cloud transformation is now more than 90% complete. Stifel noted that while the cloud migration took longer than initially expected, the company has now shifted its focus to offense. This strategic shift comes as Equifax maintains strong operational performance, with impressive gross profit margins of 56.44% and revenue growth of 7.12% over the last twelve months.

The research firm observed improved client receptivity to Equifax’s offerings, which it believes should benefit the company’s sales efforts going forward. This positive customer response comes as Equifax completes its significant technology infrastructure overhaul.

Stifel’s new price target reflects a shift in its valuation focus from 2025 to 2026 estimates. The firm is applying the same 0.5x EV/EBITDA discount to information services comparables, but now basing calculations on its 2026 projections. InvestingPro analysis indicates that Equifax is trading at relatively high multiples, suggesting investors are pricing in strong future growth. For detailed valuation metrics and 12 additional exclusive ProTips, consider exploring InvestingPro’s comprehensive research report.

Equifax, one of the three major consumer credit reporting agencies in the United States, has been working on its cloud transformation initiative to modernize its technology infrastructure and enhance its data capabilities.

In other recent news, Equifax Inc . reported its first-quarter 2025 earnings, with revenue reaching $1.442 billion, surpassing expectations by $37 million. Despite an EPS of $1.06 missing the forecast of $1.40, the adjusted EPS came in at $1.53, exceeding the guidance midpoint. Jefferies has maintained its Buy rating on Equifax and increased the price target from $260 to $290, expressing confidence in the company’s ability to sustain revenue growth. Additionally, Equifax launched a new AI-powered credit score planning tool named Optimal Path, designed to provide personalized credit score improvement plans for consumers.

Fair Isaac (NYSE:FICO) Corporation faced concerns over potential changes in the mortgage credit scoring landscape, particularly regarding the possible privatization of Government-Sponsored Enterprises like Fannie Mae (OTC:FNMA) and Freddie Mac (OTC:FMCC). This raised worries about increased competition and a shift in credit score reporting methods. Despite these challenges, RBC Capital analyst Ashish Sabardra maintains a positive outlook on Fair Isaac, emphasizing the company’s pricing power and industry standard position.

Equifax’s new developments and strategic initiatives in the non-mortgage verticals have positioned it well for continued growth, even as the U.S. mortgage market faces declines. The company’s stock surged nearly 12% following the earnings announcement, reflecting investor confidence. Equifax’s strategic focus on innovation and cloud transformation, along with its unique data assets, continues to differentiate it in the industry.

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