Equifax (EFX) PT Raised to $350 at Needham, Top Pick, Remains on Needham's Conviction List

Needham analyst Kyle Peterson raised the price target on Equifax (NYSE: EFX) to $350.00 (from $320.00) while maintaining a Buy rating.

The analyst comments "We are revisiting our thesis on both EFX and TRU following the strong performance in both stocks, which we believe is at least partially due to investors anticipating upward revisions to numbers if we are indeed heading into a favorable interest rate environment. Our view is that while both stocks stand to benefit if lower rates lead to increased lending volumes (especially in US mortgage), we believe that EFX's business mix is more leveraged to lower rates given the larger mortgage exposure. In addition, we believe that other factors, including a better quality of earnings, more disciplined capital allocation/M&A strategy, and stronger balance sheet make EFX likely to be able to maintain its premium valuation versus TRU over the next 12 months. As such, we are downgrading TRU to a Hold (from Buy). We are maintaining our Buy rating on EFX and raising our target to $350. EFX remains our Top Pick and occupies our slot on the Needham Conviction List."

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