BofA lowers Equifax rating to neutral after underwhelming investor day

Investing.com -- Bank of America (BofA) Securities lowered its rating on Equifax (NYSE: EFX) stock to Neutral from Buy and trimmed the price target to $285 from $300, following what analysts described as an underwhelming investor day.

The bank also lowered its adjusted earnings per share (EPS) estimates for 2025 and 2026 to $7.58 and $8.91, respectively, citing limited upside to the company’s long-term growth narrative.

According to BofA, one of the key investor expectations heading into the event was a revision to Equifax’s long-term growth targets, originally set in 2021. Those expectations were not met.

“We were disappointed that EFX did not revise its long-term (LT) growth outlook,” analysts Joshua Dennerlein and Wahid Amin wrote, noting the company has underperformed its previous targets due to delays in its cloud platform migration and a weak mortgage market.

The analysts also expressed skepticism about the company’s focus on infrastructure transformation.

“EFX’s value is their data not their infrastructure,” the analysts stated, adding that the time spent on the new cloud-native platform at the investor day did little to convince the market of a durable competitive edge.

While the credit ratings firm highlighted the potential of its unique datasets—particularly The Work Number (TWN)—to support growth through new use cases in government and credit pull integrations, BofA questioned how much market share the company could capture and in what timeframe.

The bank pointed out that consensus expectations may be too optimistic. “The Street is ahead of EFX’s 2030 estimates,” BofA warned, suggesting that current forecasts imply possible downside risk if a recovery in the mortgage segment remains elusive.

Shares in Equifax were down 0.8% in premarket trading Monday as of 11:55 GMT.

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