Ryan Griffin CFA, an analyst from BMO Capital, maintained the Hold rating on Equifax. The associated price target was lowered to $260.00.
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Ryan Griffin CFA’s rating is based on a combination of factors that reflect both strengths and challenges facing Equifax. The company reported a solid quarter with strong performance in its Equifax Workforce Solutions (EWS) and U.S. Information Solutions (USIS) segments. However, management has revised its growth forecast for EWS downward due to ongoing challenges in the Government and Talent sectors, which have been affected by state reimbursement volatility and a slowdown in white-collar hiring.
Despite the positive performance in certain areas, such as consumer lending and mortgage strength, higher corporate costs have impacted the overall forecast. Additionally, while international revenues showed growth, there was a noted erosion of confidence in Canada. The mixed guidance, including a lighter-than-expected adjusted EPS, alongside concerns about aggressive consensus estimates for future years, has led to a cautious outlook. As a result, Ryan Griffin CFA has given Equifax a Hold rating, suggesting that while there are positive aspects, there are also significant uncertainties that warrant a more conservative stance.
In another report released today, Barclays also maintained a Hold rating on the stock with a $240.00 price target.