Jeffrey Silber, an analyst from BMO Capital, has initiated a new Hold rating on Equifax (EFX).
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Jeffrey Silber’s rating is based on Equifax’s current market position and future growth prospects. The company has successfully diversified beyond its traditional credit bureau operations, notably through its Verifier business and the Work Number Database. However, the mortgage segment, which constitutes a significant portion of Equifax’s revenue, faces challenges due to higher interest rates that have impacted mortgage origination and refinancing activities.
Despite the strong historical growth of the Verification Services, future growth is expected to slow down, with management projecting a lower growth rate. BMO’s estimates are conservative, reflecting caution on both mortgage recovery and Verifier growth, which are below consensus expectations. Equifax’s current trading at parity with its peers and slightly above historical medians, combined with the potential for competitive pressures, contribute to the Hold rating. Increased confidence in a recovery in the mortgage market and a re-acceleration in Verifier growth could lead to a more favorable outlook in the future.
According to TipRanks, Silber is a 5-star analyst with an average return of 8.4% and a 59.27% success rate. Silber covers the Industrials sector, focusing on stocks such as ManpowerGroup, Robert Half, and Trueblue.
In another report released yesterday, Barclays also maintained a Hold rating on the stock with a $260.00 price target.