UPDATE: Equifax (EFX) PT Lowered to $186 at Goldman Sachs Citing Mortgage Market Weakness

March 31, 2021 2:57 AM EDT
Get Alerts EFX Hot Sheet
Price: $190.98 +1.40%

Rating Summary:
    11 Buy, 10 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 17 | Down: 13 | New: 41
Trade Now! 
Join SI Premium – FREE
(Updated - March 31, 2021 6:21 AM EDT)

Goldman Sachs analyst George Tong lowered the price target on Equifax (NYSE: EFX) to $186.00 (from $190.00) seeing near-term downside risk for the company due to an increasingly challenged U.S. mortgage originations outlook that is likely to weigh on intermediate-term revenue performance.

The analyst maintained a Neutral rating, stating "Mortgage-related revenue makes up ~45% of revenue in EFX’s USIS and EWS segments, which in turn comprise ~70% of total company revenue. We expect U.S. mortgage origination volumes to contract sharply in the second half of 2021 and remain in double-digit decline through 2023 due to a moderation in mortgage refinancing volumes in a rising interest rate environment. We reduce our 2021-2023 revenue and earnings forecasts and see downside risk over the next 1-2 quarters, while adopting a more balanced 12-month view that reflects improving core revenue growth and benefits from the company’s technology transformation program."


You May Also Be Interested In





Related Categories

Analyst Comments, Analyst PT Change

Related Entities

Goldman Sachs, Earnings