BofA Securities Upgrades Equifax and TransUnion Ratings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: seekingalpha
- Rating Upgrade: BofA Securities has upgraded the ratings on Equifax (EFX) and TransUnion (TRU), reaffirming a positive outlook on the business and information services sector, with expected average revenue, EPS, and free cash flow growth of 7%, 12%, and 11% in 2026, indicating strong confidence in the industry.
- Information Services Criteria: Analysts highlighted that companies in the information services sector should possess proprietary data, entrenched regulatory frameworks, high switching costs, and significant failure costs to mitigate disruption risks and leverage AI, with EFX and TRU meeting these criteria, showcasing robust market potential.
- Growth Potential: Equifax's EWS segment is entering a multi-year acceleration phase, benefiting from TWN record expansion and government mandates, with an estimated $1.2 billion in incremental revenue at normalized volumes, further enhancing margins and revealing underappreciated growth visibility.
- Market Reaction: EFX shares rose 2.15% to $196.95 in pre-market trading, aligning BofA's Buy rating with the average sell-side analyst rating, while TRU shares increased 1.92% to $75.34, reflecting positive investor sentiment following the rating upgrades.
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Analyst Views on EFX
Wall Street analysts forecast EFX stock price to rise
14 Analyst Rating
10 Buy
4 Hold
0 Sell
Moderate Buy
Current: 192.800
Low
195.00
Averages
232.08
High
283.00
Current: 192.800
Low
195.00
Averages
232.08
High
283.00
About EFX
Equifax Inc. is a global data, analytics, and technology company. The Company is engaged in helping financial institutions, companies, employers, and government agencies make critical decisions. The Company’s Workforce Solutions segment provides services enabling customers to verify income, employment, educational history, criminal justice data, healthcare professional licensure and sanctions of people in the United States. The Company’s U.S. Information Solutions (USIS) segment provides consumer and commercial information solutions to businesses in the United States, including online information, decisioning technology solutions, identity management services, analytical services, e-commerce fraud and charge back protection services, portfolio management services, mortgage information and marketing services. The Company’s International segment provides products and services similar to those available in the USIS segment but with variations by geographic region.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BofA Securities Upgrades Equifax and TransUnion Ratings
- Rating Upgrade: BofA Securities has upgraded the ratings on Equifax (EFX) and TransUnion (TRU), reaffirming a positive outlook on the business and information services sector, with expected average revenue, EPS, and free cash flow growth of 7%, 12%, and 11% in 2026, indicating strong confidence in the industry.
- Information Services Criteria: Analysts highlighted that companies in the information services sector should possess proprietary data, entrenched regulatory frameworks, high switching costs, and significant failure costs to mitigate disruption risks and leverage AI, with EFX and TRU meeting these criteria, showcasing robust market potential.
- Growth Potential: Equifax's EWS segment is entering a multi-year acceleration phase, benefiting from TWN record expansion and government mandates, with an estimated $1.2 billion in incremental revenue at normalized volumes, further enhancing margins and revealing underappreciated growth visibility.
- Market Reaction: EFX shares rose 2.15% to $196.95 in pre-market trading, aligning BofA's Buy rating with the average sell-side analyst rating, while TRU shares increased 1.92% to $75.34, reflecting positive investor sentiment following the rating upgrades.
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Equifax (EFX.US) Executive Plans to Sell $7.4 Million in Common Stock via Form 144
Stock Sale Announcement: Equifax officer Mark Wintend plans to sell 37,791 shares of the company's common stock.
Market Value: The total market value of the shares being sold is approximately $7.4 million.
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- Sales Growth: The company's quarterly sales reached $1.551 billion, exceeding the anticipated $1.527 billion, demonstrating Equifax's sustained competitiveness in the market, which contributed to its stock price increase.
- Future Outlook: Equifax projects FY2026 adjusted EPS between $8.30 and $8.70, slightly below the market estimate of $8.74, while forecasting sales of $6.660 billion to $6.780 billion, indicating stable growth potential.
- Analyst Rating Adjustments: Following the earnings announcement, Needham's Kyle Peterson maintained a Buy rating but lowered the price target from $295 to $265, while Morgan Stanley's Toni Kaplan kept an Overweight rating, reducing the target from $269 to $244, reflecting a cautious market sentiment regarding Equifax's future performance.
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Texas Instruments Acquires Silicon Labs in $7.5B Deal
- Acquisition Agreement: Texas Instruments is set to acquire Silicon Labs for $231 per share in an all-cash transaction valued at $7.5 billion, which not only boosts Silicon Labs' market valuation but also enhances Texas Instruments' competitive edge in the semiconductor sector.
- Positive Market Reaction: Following the acquisition announcement, Silicon Labs' stock surged by 49%, indicating strong investor confidence in the deal and reflecting optimistic expectations for consolidation within the semiconductor industry.
- Strong Earnings Performance: Silicon Labs reported an adjusted EPS of 56 cents for Q4, slightly above the consensus estimate of 55 cents, demonstrating stable financial performance that enhances the attractiveness of the acquisition.
- Industry Consolidation Trend: This acquisition represents a strategic move for Texas Instruments to expand its product line and signifies an acceleration in semiconductor industry consolidation, potentially triggering more similar deals that could reshape the market landscape.
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Equifax (EFX) Q4 2025 Earnings Call Transcript
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BofA Securities Upgrades Equifax and TransUnion Ratings
- Rating Upgrade: BofA Securities has upgraded the ratings on Equifax (EFX) and TransUnion (TRU), reaffirming a positive outlook on the business and information services sector, with expected average revenue, EPS, and free cash flow growth of 7%, 12%, and 11% in 2026, indicating strong confidence in the industry.
- Information Services Criteria: Analysts highlighted that companies in the information services sector should possess proprietary data, entrenched regulatory frameworks, high switching costs, and significant failure costs to mitigate disruption risks and leverage AI, with EFX and TRU meeting these criteria, showcasing robust market potential.
- Growth Potential: Equifax's EWS segment is entering a multi-year acceleration phase, benefiting from TWN record expansion and government mandates, with an estimated $1.2 billion in incremental revenue at normalized volumes, further enhancing margins and revealing underappreciated growth visibility.
- Market Reaction: EFX shares rose 2.15% to $196.95 in pre-market trading, aligning BofA's Buy rating with the average sell-side analyst rating, while TRU shares increased 1.92% to $75.34, reflecting positive investor sentiment following the rating upgrades.
See More
Latest Ratings and Outlook from Wall Street
- Nvidia Rating Reaffirmed: Citi reiterates Nvidia as a buy, anticipating the stock will outperform in the second half of 2026 as demand visibility extends into 2027, recommending investors add to their positions given attractive valuations.
- Toast Upgraded to Outperform: Bernstein upgrades Toast from market perform to outperform, noting that despite a 26% year-to-date decline, the restaurant tech company is positioned as an AI winner, suggesting a positive outlook.
- Carvana Maintains Overweight Rating: JPMorgan reiterates Carvana as overweight, asserting that fears surrounding AI are overblown, with the company's vertically integrated infrastructure providing a unique competitive moat to leverage AI effectively.
- Melco Upgraded to Buy: UBS upgrades Melco from neutral to buy, highlighting that despite a 27% year-to-date decline, enhancements at its City of Dreams in Macau are expected to offset margin pressures and branding fee increases in 2026.
See More
Equifax (EFX.US) Executive Plans to Sell $7.4 Million in Common Stock via Form 144
Stock Sale Announcement: Equifax officer Mark Wintend plans to sell 37,791 shares of the company's common stock.
Market Value: The total market value of the shares being sold is approximately $7.4 million.
See More
Equifax Reports Strong Q4 Earnings, Beats Estimates
- Strong Earnings Report: Equifax reported an adjusted EPS of $2.09 for Q4, surpassing market expectations of $2.05, indicating robust profitability that boosts investor confidence.
- Sales Growth: The company's quarterly sales reached $1.551 billion, exceeding the anticipated $1.527 billion, demonstrating Equifax's sustained competitiveness in the market, which contributed to its stock price increase.
- Future Outlook: Equifax projects FY2026 adjusted EPS between $8.30 and $8.70, slightly below the market estimate of $8.74, while forecasting sales of $6.660 billion to $6.780 billion, indicating stable growth potential.
- Analyst Rating Adjustments: Following the earnings announcement, Needham's Kyle Peterson maintained a Buy rating but lowered the price target from $295 to $265, while Morgan Stanley's Toni Kaplan kept an Overweight rating, reducing the target from $269 to $244, reflecting a cautious market sentiment regarding Equifax's future performance.
See More
Texas Instruments Acquires Silicon Labs in $7.5B Deal
- Acquisition Agreement: Texas Instruments is set to acquire Silicon Labs for $231 per share in an all-cash transaction valued at $7.5 billion, which not only boosts Silicon Labs' market valuation but also enhances Texas Instruments' competitive edge in the semiconductor sector.
- Positive Market Reaction: Following the acquisition announcement, Silicon Labs' stock surged by 49%, indicating strong investor confidence in the deal and reflecting optimistic expectations for consolidation within the semiconductor industry.
- Strong Earnings Performance: Silicon Labs reported an adjusted EPS of 56 cents for Q4, slightly above the consensus estimate of 55 cents, demonstrating stable financial performance that enhances the attractiveness of the acquisition.
- Industry Consolidation Trend: This acquisition represents a strategic move for Texas Instruments to expand its product line and signifies an acceleration in semiconductor industry consolidation, potentially triggering more similar deals that could reshape the market landscape.
See More
Equifax (EFX) Q4 2025 Earnings Call Transcript
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