UPDATE: Equifax (EFX) PT Lowered to $250 at Credit Suisse, Defends Stocks, Says Buy on The Selloff
Credit Suisse analyst Kevin McVeigh lowered the price target on Equifax (NYSE: EFX) to $250.00 (from $285.00) while maintaining a Outperform rating.
The analyst comments "BOTTOM LINE—use the ~7% intraday selloff to accumulate the stock as Q1A beat was more than offset by a cut to FY22 guidance reflecting the recent rapid decline in mortgage [~20% 2022E revenue] as evidenced by ~40% US mortgage market decline in H222. While the market focuses on guidance, we stress the last few decades including a remixed higher growth, less cyclical business in workforce solutions [45% 2022E vs 10% in 2007], cloud transition, new product innovation, and increased pricing. We remain steadfast in our long-term thesis calling for structurally higher organic revenue + multiple expansion amid cloud-native products, applications, + data fabric fueling an ability to outperform end markets [~$45b TAM]. We see no change to its relatively new LT growth framework of ~7-10% organic/~8-12% total topline growth [EFX cloud + NPI adds ~200-300bps]. Equifax should outpace the market in 2022 [USIS down 6-7% vs. mortgage down ~40%] on pricing, new products and customers, increased frequency of pulls, + more system-to-system transactions."