NEW YORK (TheStreet) -- Deutsche increased its price target on Equifax (EFX) to $80, increased its estimates through 2015 and set a "buy" rating. The firm said the company should see accelerating revenue growth.
The stock closed at $73.09 on Monday.
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- Despite its growing revenue, the company underperformed as compared with the industry average of 12.3%. Since the same quarter one year prior, revenues slightly increased by 3.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
- EQUIFAX INC reported flat earnings per share in the most recent quarter. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EQUIFAX INC increased its bottom line by earning $2.69 versus $2.17 in the prior year. This year, the market expects an improvement in earnings ($3.84 versus $2.69).
- The debt-to-equity ratio is somewhat low, currently at 0.69, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Despite the fact that EFX's debt-to-equity ratio is low, the quick ratio, which is currently 0.55, displays a potential problem in covering short-term cash needs.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The gross profit margin for EQUIFAX INC is rather high; currently it is at 64.62%. Regardless of EFX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, EFX's net profit margin of 14.35% compares favorably to the industry average.
- You can view the full analysis from the report here: EFX Ratings Report
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