Equifax Gets Credit From Argus; Analyst Initiates At Buy

Argus initiated coverage of Equifax Inc. EFX at Buy with a $166 price target.

Analyst Stephen Biggar estimates a 2017 adjusted EPS of $6.15 and to increase 12.2 percent further to $6.90 in 2018.

Related Link: Equifax Board of Directors Declares Quarterly Dividend

A Decade of Beats

Equifax posted a first-quarter adjusted EPS of $1.44, marking its 41st straight quarter of meeting or beating consensus. EPS was up $0.21 year over year.

The stock outperformed the S&P 500 in Q1, up 6 percent versus the index’s 2 percent. In the past year though, Equifax is down 9.8 percent compared to the S&P’s 15.5 percent gain.

Looking longer term though at the last five years, the company’s 192 percent return vastly outperformed the S&P’s 83 percent.

Biggar said EPS growth over the last five years has been driven by a solid business strategy and improving economy.

Future Growth

The analyst expects the recently acquired Veda Group to continue boosting revenue growth. Veda Group, which operates in the Asia-Pacific region, helped Equifax’s international revenues rise 37 percent.

Stronger demand in wider geographic regions will also benefit the company’s total 2017 revenue.

Besides Veda, Biggar is looking to see increased demand for mortgage-related products and cost cut driving margin growth.

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