Toni Kaplan, an analyst from Morgan Stanley, maintained the Buy rating on Equifax. The associated price target remains the same with $290.00.
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Toni Kaplan has given his Buy rating due to a combination of factors that highlight Equifax’s strategic positioning in the credit scoring market. Equifax’s decision to offer VantageScore 4.0 at a significantly reduced price compared to FICO, and to provide it free for customers purchasing a FICO score, is expected to drive increased adoption of VantageScore. This pricing strategy is particularly compelling given the recent approval of VantageScore for agency-backed mortgages by the FHFA, which could lead to substantial market share gains.
Moreover, Equifax’s move to maintain the VantageScore 4.0 pricing through 2027 ensures long-term stability and competitiveness. The company’s ability to charge for additional data or services necessary for FICO score calculation further strengthens its financial outlook. The potential for increased adjusted EBITDA from these strategic initiatives, coupled with the proprietary nature of the credit data owned by the bureaus, underscores the value Equifax brings to the market, justifying the Buy rating.
In another report released today, Needham also reiterated a Buy rating on the stock with a $295.00 price target.