UPDATE: Credit Suisse Upgrades Equifax as Stock is Poised for Revenue Acceleration
In a report published Wednesday, Credit Suisse analyst Georgios Mihalos upgraded the rating on Equifax (NYSE: EFX) from Neutral to Outperform, and raised the price target from $65.00 to $80.00.
In the report, Credit Suisse noted, “We upgraded EFX to Outperform and raised our target price to $80 from $65, reflecting our view that organic revenue growth will improve over 2H14 and materially accelerate in 2015. Excluding volatile Mortgage business (~15% of revenue), EFX has consistently posted high-single-digit cc organic revenue growth since 2011 (5.6% in 2013). With a continued modest improvement in U.S. consumer lending and a forecasted 39% decline in mortgage origination volumes (MBA) in 2014 turning to 15% growth in 2015, we think EFX is likely to exceed Street consensus estimates for 2015 with revenue growth of 9%.
"We are raising our 2015 revenue and adj. EPS estimates by 1% and 2.4%, to $2.655M/$4.30, respectively, ahead of the consensus. We recommend investors build positions now ahead of positive estimate adjustments.”
Equifax closed on Tuesday at $68.45.
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