Equifax (EFX) Q2 results were "broadly" in line with expectations, but weaker Q3 guidance reflected delayed government contract signings and pressure from elevated mortgage rates, Oppenheimer said in a report Friday.
The firm said it conducted an analysis on government revenue opportunity and raised Equifax's 2027 earnings estimate to $10.48 per share from $10.28. The 2026 estimate was increased to $8.63 from $8.62, according to the report.
The firm sees potential upside to consensus estimates after the recent $100 million in state contracts and the prospect of new awards next year from a sizable pipeline, according to the note.
While the company expects industry-wide mortgage originations to decline in 2026, the firm noted that the softer environment is already baked into the
valuation. The firm also sees potential market share gains from VantageScore 4.0 adoption.
Oppenheimer reiterated an outperform rating on Equifax with a price target of $206, adding that the company's shares remain "undervalued."
Price: $172.47, Change: $+5.75, Percent Change: +3.45%