Equifax (EFX) Stock Forecast & Price Target

Equifax is poised for strong financial growth, with USIS revenue projected to increase in the mid-single digits, supported by a robust 35% uptick in mortgage revenue expectations amidst a recovering mortgage market. The company anticipates its EBITDA margins to expand by 100 basis points year-over-year, reaching around 32.4-32.9%, indicative of operational strength and enhanced profitability. Additionally, continued growth in Equifax's workforce solutions and the acceleration of income verification services further reinforce a promising outlook for the company's revenue trajectory and competitive position.

Equifax faces significant headwinds due to a projected 10% decline in earnings driven by mortgage origination volumes potentially falling below expectations and increased investments in product innovation. The company's revenue growth is moderating, particularly with international revenue anticipated to grow at mid-single digits, a decline from 6% the prior year, largely influenced by macroeconomic challenges in key markets. Additionally, lingering repercussions from the 2017 cybersecurity breach continue to affect Equifax's reputation and cash flow, coupled with risks related to stricter lending standards and potential mergers and acquisitions complications.