Equifax’s Strong Q2 Performance and Long-Term Growth Potential Justify Buy Rating Despite Near-Term Challenges

In a report released yesterday, Toni Kaplan from Morgan Stanley maintained a Buy rating on Equifax, with a price target of $290.00.

Toni Kaplan has given his Buy rating due to a combination of factors that highlight Equifax’s strong performance and potential for long-term growth. The company reported an impressive second quarter with an 8.0% organic revenue growth, surpassing previous estimates. This was accompanied by a year-over-year margin expansion, resulting in a notable earnings per share beat compared to both Morgan Stanley’s and consensus expectations. The growth was particularly strong in the Government segment of Equifax Workforce Solutions (EWS), which saw a significant acceleration.
Despite the solid quarterly results, there are expectations for a slower second half, primarily due to budget constraints affecting government revenue growth. However, Kaplan views these challenges as temporary and anticipates a re-acceleration in 2026. The long-term outlook remains positive, with significant earnings per share growth expected that is not yet reflected in the stock price. Consequently, Kaplan maintains an overweight position on Equifax, although the price target has been adjusted slightly downward to $290.

In another report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $325.00 price target.