Equifax Stock May Crash 50% in This Awful Bear Prediction After Big Data Breach

A loss of trust could cripple business.
By Kinsey Grant ,

Following a massive loss of consumer trust, Equifax Inc. (EFX) - Get Report stock could drop as much as 50% in the "severe scenarios" Morgan Stanley has contemplated, analysts wrote in a note Thursday, Sept. 14.

Morgan Stanley analysts set a new floor for Equifax shares, updating their bear case to $50 per share for the struggling company days after a massive data breach robbed 30% from its trading price. Morgan Stanley's updated bear scenario puts Equifax stock at just over half the price it traded for Thursday afternoon.

In the new bear case, recent trust issues will drive consumers to start questioning why they pay for Equifax credit monitoring services and send direct-to-consumer business spiraling toward zero. That loss is compounded by the failure of Equifax to detect this week's data breach for "some time" after it occurred, analysts wrote.

While the bear case for Equifax is startling, Morgan Stanley has an "equal weight" rating and a $127 price target for Equifax, down from a previous target of $140. Equifax stock traded down 0.91% to $98.09 late Thursday.

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