Equifax (EFX) Stock Forecast & Price Target

Equifax's revenue experienced a 9% year-over-year increase on an organic constant currency basis, indicating robust growth potential. The company's workforce solutions segment is projected to continue accelerating due to increased adoption of income and employment verification services, alongside an anticipated recovery in mortgage originations, which significantly contribute to overall revenue. Furthermore, expectations of a return to double-digit growth in the government business, driven by mortgage pre-approval and pricing strategies, support a favorable outlook for Equifax’s financial performance.

Equifax's stock outlook is negatively influenced by a notable decline in hiring volume, which saw a 6% year-to-date decline through November that worsened to 8% in January, adversely impacting the workforce solutions segment that constitutes over 40% of its revenue. Additionally, the company's 4Q24 results fell short of market expectations, with challenges stemming from decreased mortgage volumes and unfavorable foreign exchange headwinds, leading to a projected 12% year-over-year decline in mortgage inquiries. Furthermore, despite international revenue contributing over 20% of total revenue, its growth is expected to decelerate, with management forecasting only 6% growth in Q1 2025 and 7% for the full year, highlighting persistent headwinds across multiple revenue streams.