{
  "id": 16566998,
  "title": "RBC downgrades Equifax stock rating on mortgage weakness concerns",
  "url": "https://urgent.news/2026/10/26/rbc-downgrades-equifax-stock-rating-on-mortgage-weakness-concerns",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-26T06:27:15.000Z",
  "source": {
    "name": "Investing.com",
    "slug": "investing-com",
    "url": "https://www.investing.com/news/analyst-ratings/rbc-downgrades-equifax-stock-rating-on-mortgage-weakness-concerns-93CH-4971460"
  },
  "original_language": "en",
  "account": "RBC Capital has lowered its rating on Equifax Inc. stock from \"Outperform\" to \"Sector Perform\" amid concerns over mortgage weakness. The firm raised its price target for the stock to $189 from $177, as Equifax's current share price is $182.36. RBC's decision to downgrade the stock is based on three key headwinds: persistent mortgage market challenges exacerbated by higher interest rates, potential cooling in consumer lending, and possible regulatory concerns related to a tri-merge to bi-merge transition.\n\nThe firm's fiscal 2027 earnings per share estimate for Equifax stands at $9.00, which is lower than the consensus estimate of about $9.66. In terms of valuation, RBC places the stock at 21 times fiscal 2027 price-to-earnings ratio, while the current P/E ratio is 29.5. Notably, 19 analysts have revised their earnings estimates downwards for the upcoming period, according to InvestingPro Tips.\n\nEquifax's recent third-quarter earnings exceeded expectations, with earnings per share surpassing analyst estimates. However, the company anticipates a decline in USIS mortgage credit inquiries of over 20% in the fourth quarter of 2026, with a projected decline in the high-single digits for fiscal 2027, primarily concentrated in the first eight months of the year. RBC models a mid-teens decline in mortgage inquiries for the first half of 2027.\n\nDespite these concerns, Equifax's guidance is valued at 21 times fiscal 2027 price-to-earnings ratio, which is lower than its current P/E ratio of 29.5. The firm believes that the company remains undervalued at its current levels, positioning it among stocks on the Most Undervalued list.",
  "summary": null,
  "key_points": [
    "RBC downgrades Equifax stock rating to Sector Perform",
    "Concerns over mortgage weakness and higher interest rates cited",
    "Price target raised to $189 from $177, but P/E ratio higher than 21x"
  ],
  "editors_take": "The downgrade signals that persistent mortgage market headwinds and shifting regulatory requirements are beginning to weigh on long-term earnings expectations for this credit reporting giant.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}