Equifax (EFX) Stock Forecast & Price Target

Equifax is projecting revenue for FY25 in the range of $6.03 to $6.06 billion, reflecting an increase from a prior forecast of $5.97 to $6.04 billion, which indicates a positive growth trajectory. The company's Earnings Workforce Solutions (EWS) segment demonstrated strong performance, with a year-over-year growth of 4.7%, driven by robust growth in government and consumer lending, suggesting sustained demand for income and employment verification services. Additionally, Equifax's recent quarterly performance showed a revenue of $1.55 billion, marking a 7.2% increase year-over-year and exceeding both internal estimates and consensus forecasts, enhancing the outlook for future earnings potential.

Equifax faces a negative outlook primarily due to a projected 10% decline in EBITDA, attributed to diminished revenue visibility from a lack of new contract wins and heightened competition in the market. Additionally, the company's updated revenue guidance indicates a growing headwind from foreign exchange rates and a decline in mortgage inquiries, further impacting overall financial performance. The lingering effects of the 2017 cybersecurity breach on reputation and cash flow, coupled with a relatively high debt load that creates refinancing risks in a volatile credit environment, add to the negative sentiment surrounding the stock.