Stifel cuts Equifax stock price target on mortgage market headwinds

Stifel has reduced its price target on Equifax Inc. (NYSE: EFX) to $217 from $235, maintaining a Buy rating for the company. The primary reason for this adjustment is the outlook of the mortgage market, which is driving Equifax to lower its fourth-quarter 2026 implied guidance. Apart from this factor, the business is expected to perform as per predictions.

The Government segment shows positive signs with contract signings, and talent growth has been impressive at over 20%. Additionally, commentary surrounding the adoption of Vantage Score is seen favorably for credit bureaus. The mortgage market is considered a headwind, as expected. The 11.3% stock increase today, compared to the S&P 500's 0.3% increase, is likely due to short covering.

Equifax reported adjusted earnings of $2.26 per share in the third quarter of 2026, beating the estimated $2.20 per share. Revenue for the quarter stood at $1.69 billion, matching expectations. Needham raised its price target for Equifax from $190 to $210, citing margin strength resulting from AI-driven productivity initiatives and share buybacks.

BMO Capital also increased its price target to $175, highlighting solid results despite challenges in the mortgage sector, along with growth in the government segment and improved margins as positive factors.