Equifax Price Target Trimmed as Stock Multiple Adjusted to Downside

Barclays analysts recently made a notable change in their outlook for Equifax (NYSE: EFX), downgrading the stock from Overweight to Equal Weight. Equifax's stock price shed 9.37% on Friday, as markets were gripped by tariff talks,.

The price target has been significantly reduced from $325 to $260. This adjustment underscores Barclays' concerns about various market risks affecting Equifax, and coming on broader market declines only serve to accentuate the sentiment.

Equifax, which is currently trading at a high valuation level with a Price-to-Earnings (P/E) ratio of 43x, has experienced an 16.3% decline in its stock value year-to-date. The company's beta of 1.65 indicates it is subject to higher volatility compared to the overall market.

Despite this, Equifax's recent performance shows some positive aspects. The firm's estimated first-quarter 2025 revenue, adjusted EBITDA, and adjusted EPS are slightly above the initial guidance, with increases of $27 million, $10 million, and $0.05 respectively. However, for the full year 2025, estimates for revenue, adjusted EBITDA, and adjusted EPS have been slightly revised downwards by $14 million, $11 million, and $0.06 respectively from previous estimates.

Further weighing on the stock's outlook, Barclays applied approximately 22 times the forecasted adjusted EPS for fiscal year 2027, discounted by 10%, while previously it was based on a multiple of 27 times. This change reflects the bank's updated valuation assessment of Equifax's future earnings potential.

On a different note, other analysts have contrasting views. RBC Capital Markets upgraded Equifax's stock to Outperform, setting a target price of $300, citing the anticipated recovery in the mortgage market and FICO price increases as positive factors.