Equifax Named Top Pick For 2024 By Needham, Price Target Raised On Expected Mortgage Rate Tailwinds
Portfolio Pulse from Anusuya Lahiri
Needham analyst Kyle Peterson has maintained a Buy rating on Equifax Inc (EFX) and raised the price target from $230 to $305, naming it the Top Pick for 2024 and adding it to the Needham Conviction List. Peterson expects mortgage rate declines to provide tailwinds for EFX in 2024. EFX's non-mortgage businesses are scaling and showing record growth, which should benefit the company. EFX's data platform and workforce solutions segment are seen as differentiators from competitors like Experian Plc (EXPGY) and TransUnion (TRU). Peterson anticipates EFX shares to significantly outperform in 2024 with a favorable risk-reward at a P/E multiple of 25x his FY25 estimate. EFX shares were up 1.07% at $235.53 on last check.
January 04, 2024 | 7:36 pm
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POSITIVE IMPACT
Equifax Inc's stock price target has been raised from $230 to $305 by Needham analyst Kyle Peterson, who also named it the Top Pick for 2024 and added it to the Needham Conviction List. The company is expected to benefit from declining mortgage rates and strong performance in its non-mortgage businesses.
The upgrade in the price target and the addition to the Needham Conviction List are strong positive signals for investors, indicating analyst confidence in the company's future performance. The expected tailwinds from mortgage rates and the strong non-mortgage business growth are likely to be viewed positively by the market, potentially leading to a short-term increase in the stock price.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
TransUnion (TRU) is mentioned as one of Equifax Inc's (EFX) closest competitors, particularly in the workforce solutions segment, which is highlighted as a differentiator for EFX.
While TRU is mentioned as a competitor, the article focuses on EFX's strengths rather than TRU's weaknesses. The mention does not provide enough context to determine a clear short-term impact on TRU's stock price, but it does highlight the competitive landscape in the industry.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 30
NEGATIVE IMPACT
HireRight Holdings Corp (HRT) was replaced by Equifax Inc (EFX) on the Needham Conviction List by analyst Kyle Peterson.
Being replaced on the Needham Conviction List by EFX may be perceived negatively by investors as it suggests a shift in analyst sentiment towards HRT. This could potentially lead to a short-term negative impact on HRT's stock price as investors may reallocate based on the updated analyst recommendation.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50