Equifax (EFX) Stock Forecast & Price Target

Equifax has demonstrated a robust financial performance, with a 9% year-over-year revenue increase on an organic constant currency basis, underscoring the company's resilience and growth potential. The firm is positioned to benefit from an anticipated recovery in mortgage originations, as its mortgage-related business significantly contributes to total revenues and is expected to gain momentum in late FY25/early FY26. Additionally, the government's business segment is projected to achieve double-digit growth in the second half of 2025, driven by enhancements in mortgage pre-approval and pre-qualification products.

Equifax has reported a concerning decline in hiring volume, with an 8% drop noted in January and a 6% decrease year-to-date through November, which is critical given that over 40% of its revenue stems from workforce solutions. The company's fourth quarter results fell short of expectations due to weaker mortgage volumes, soft hiring activity, and headwinds from foreign exchange fluctuations, leading to a negative outlook for 2025 that anticipates a 12% year-over-year decline in mortgage inquiries. Additionally, while international revenue growth is projected at only 6% year-over-year for the first quarter of 2025 and 7% for the full year, this slowdown adds further pressure on Equifax's overall financial performance.