Oppenheimer has raised the price target for Equifax (NYSE: NYSE:EFX) shares to $315 from the previous $300 while maintaining an Outperform rating.
The firm's analyst cites the expectation of increased benefits from high mortgage refinancing activities during the third quarter, which could positively impact the company's US Information Solutions (USIS) segment.
The analyst from Oppenheimer stands by the third-quarter 2024 earnings per share (EPS) estimate of $1.85, which is slightly above the consensus by 1.4%. The full-year estimates for 2024 and 2025 are held at $7.37 and $9.37 EPS, respectively. Additionally, a new estimate for the year 2026 has been initiated at $10.85 EPS.
The decision to raise the price target is based on applying a 29x multiple. This adjustment reflects a positive outlook on Equifax's performance, particularly in the USIS division, which is anticipated to see a boost from the mortgage refinancing activities that were higher than expected in mid-July.
Equifax, a global data, analytics, and technology company, has been closely watched by investors, especially considering the dynamic financial landscape and the role of credit information in financial decision-making.
In other recent news, Jefferies has raised its price target for TransUnion (NYSE:TRU) based on the strength of the mortgage sector, maintaining a Buy rating on the stock.
TransUnion recently reported an 8% revenue growth in the second quarter of 2024, surpassing expectations, and raised its full-year guidance. Jefferies analysts also anticipate that Equifax will raise its full-year guidance.
Similarly, Equifax's price target has been increased by Jefferies, reflecting a positive outlook on the mortgage sector. Equifax's second quarter results showed a year-over-year revenue increase of 9%, reaching $1.43 billion, and an adjusted EPS of $1.82, surpassing market expectations. UBS initiated coverage on Equifax with a Buy rating, projecting the company to generate over $1 billion in revenue between 2024 and 2026.
Needham, a prominent investment firm, increased its price target for Equifax to $350, reaffirming its Buy rating on the stock. Needham has downgraded TransUnion to a Hold rating from Buy, despite TransUnion's strong stock performance.
InvestingPro Insights
Equifax's recent performance and future prospects align well with the analyst's optimistic outlook. According to InvestingPro data, Equifax has demonstrated strong financial performance with a revenue of $5.47 billion in the last twelve months as of Q2 2024, showing a growth of 7.98%. The company's gross profit margin stands at an impressive 55.63%, underlining its operational efficiency.
An InvestingPro Tip highlights that Equifax has maintained dividend payments for 54 consecutive years, showcasing its financial stability and commitment to shareholder returns. This is particularly noteworthy given the analyst's positive outlook on the company's future earnings.
Another relevant InvestingPro Tip indicates that 4 analysts have revised their earnings upwards for the upcoming period. This aligns with Oppenheimer's optimistic EPS estimates and the raised price target.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Equifax, providing a deeper understanding of the company's financial health and market position.
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