Equifax (EFX) Stock Forecast & Price Target

Equifax is projected to generate revenue in FY25 between $6.03 billion and $6.06 billion, reflecting an increase from previous estimates of $5.97 billion to $6.04 billion, indicating robust financial growth. The company's growth in Employer Workforce Solutions (EWS) is accelerating, with a reported 4.7% year-over-year increase driven by strong performance in government and consumer lending sectors. Additionally, Equifax's third-quarter revenue reached $1.55 billion, up 7.2% year-over-year, surpassing estimates and consensus figures, suggesting ongoing strong business performance.

Equifax faces a negative outlook primarily due to a projected 10% decline in EBITDA, driven by reduced revenue visibility from a stagnant contract acquisition environment and increased competition, particularly in the contract compression market. Additionally, the company anticipates a headwind from foreign exchange fluctuations and a significant decline in mortgage inquiries, which may impede revenue growth. Furthermore, Equifax’s high debt levels increase refinancing risks in a volatile credit environment, potentially leading to elevated interest expenses, all of which are compounded by ongoing repercussions from the 2017 cybersecurity breach that adversely affected its cash flow and reputation.