Equifax (EFX) Stock Forecast & Price Target

Equifax is projecting revenue growth for FY25, with expectations now set between $6.03 billion and $6.06 billion, reflecting an increase from the prior estimate of $5.97 billion to $6.04 billion. The company's workforce solutions (EWS) segment is seeing strong performance, marked by a year-over-year increase of 4.7%, driven by significant growth in government services and consumer lending, which contributes to an anticipated organic revenue growth of 6.5-7.1%. Additionally, Equifax reported a 7.2% year-over-year revenue increase in Q3, amounting to $1.55 billion, surpassing both internal estimates and consensus forecasts, indicating robust business performance and potential for further upside.

Equifax's financial outlook is plagued by a projected 10% decline in EBITDA, primarily due to a lack of visibility in revenue from contract wins and intensified competition in the contract compression market. Additionally, the company is facing a significant challenge with a projected high single-digit year-over-year decline in mortgage inquiries, which further compounds difficulties in revenue generation. Furthermore, the lingering repercussions of the 2017 cybersecurity breach continue to negatively impact cash flow, while Equifax's elevated debt levels raise refinancing risks in a volatile credit environment, potentially leading to increased interest expenses.