Equifax downgraded by Bank of America amid growth concerns

In early June 2025, Bank of America Securities (BofA) downgraded Equifax, Inc. from a Buy to Neutral rating following the company's recent investor day. During this event, Equifax projected an 8%-12% revenue growth rate, of which 7%-10% is expected to be organic growth, with mergers and acquisitions contributing an additional 1%-2%. However, this forecast did not meet the expectations of analysts, prompting concerns over the company's future performance. Equifax's long-term growth estimates were originally outlined at the company's 2021 investor day, and the lack of revision during the recent announcement was disappointing to analysts and investors alike. The company projected fiscal year 2025 revenues between $5.91 billion and $6.03 billion, slightly below consensus projections that targeted $5.96 billion. Adjusted earnings estimates for the same period also fell short, with expectations set between $7.25 and $7.65 per share compared to the consensus of $7.48. The analyst from BofA reduced projections for adjusted EPS in 2025 to $7.58 from $7.63 and for 2026 to $8.91 from $9.22, illustrating a tempered outlook on the company's growth potential. Key concerns highlighted by BofA included the belief that Equifax's migration to a cloud-native platform does not create a long-lasting competitive advantage or moat. Moreover, it was noted that the company's future growth would rely significantly on product innovation utilizing its unique data assets, which it hopes will drive growth back to its original long-term forecast. Analysts suggested that a recovery in the mortgage market would be a significant boost to Equifax’s growth prospects, although the timing of such a recovery remains uncertain. Following the downgrade, EFX stock reflected this sentiment, trading down by 1.65% to $251.47.