Stifel analyst Shlomo Rosenbaum reiterated a Buy rating and $235.00 price target on Equifax (NYSE: EFX).

The analyst commented, "EFX announced its intention to acquire Círculo de Crédito in Mexico for $750M. The implied deal multiples are 12.1x TTM EBITDA, 11.7x 2026E EBITDA, and 9.4x synergized EBITDA. The deal is expected to close in 4Q26. The EV/TTM EBITDA is slightly higher than the 11.7x TTM EBITDA TRU was paying at the time of its Buró de Crédito acquisition announcement, but Círculo is growing revenue faster than TRU’s target. The deal makes sense to us – it is a business EFX knows well, in an emerging economy, where EFX is buying a good asset that should be accretive to revenue growth and margins. Círculo is growing double-digits and has a mid-40% EBITDA margin profile. The potential acquisition would allow EFX to enter the under-penetrated, fast-growing Mexico market. Círculo is a leader in alternative data or information not included in traditional credit reports in Mexico. For context, while traditional credit data is required by law to be shared between the credit bureaus, alternative credit data is not. Círculo is the only Mexican bureau licensed for both consumer and commercial services. The expected deal synergies include deepening Círculo’s retail and fintech data moat and leveraging EFX’s cloud native architecture (i.e., new product rollouts), in addition to platform integration (i.e., cost synergies). EFX’s 2023 successful integration of the 2023 Boa Vista acquisition is an analogous reference point for Círculo’s potential post-integration benefits."

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Shares of Equifax closed at $174.58 yesterday.