Equifax downgraded to Hold equivalent at Oppenheimer
GOCMEN/iStock via Getty Images
Equifax (EFX) was trading lower as Oppenheimer cut its recommendation on the stock to Perform from Outperform.
Shares were 1.12% lower at $159.45 during pre-market trading on Friday.
"In Q3, mortgage origination growth deteriorated amid rising interest rates and geopolitical uncertainty," said analysts Rayna Kumar, Anthony Cyganovich, and Guru Sidaarth.
Against this backdrop, Oppenheimer downgraded the stock over weakening mortgage fundamentals, potential elimination of the tri-merge requirement, and limited incremental upside from the government.
"Nevertheless, we remain constructive on EFX's longer-term prospects, supported by its differentiated data assets, continued Workforce Solutions penetration, and secular demand for data-driven risk management solutions," said the research note.
"EFX trades at 16x NTM P/E versus its 1-year average of 22x, but we believe upside is limited until mortgage and regulatory conditions improve," said the analysts.
Oppenheimer's rating aligns with Seeking Alpha authors as well as the Quant rating of Hold. Wall Street analysts see the stock as Buy.
KioskNews shows a cleaned-up reading view extracted from the publisher’s page — the original always lives on their site, not ours.