Will This Analyst Upgrade Help Equifax (EFX) Stock Today? (Update)

Update (9:32 a.m.): Updated with Wednesday market open information.

NEW YORK (TheStreet) -- Credit Suisse upgraded Equifax  (EFX) to "outperform" from "neutral" and set an $80 price target. The firm notes the company's organic revenue should accelerate.

The stock was flat when the market opened on Wednesday.

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Separately, TheStreet Ratings team rates EQUIFAX INC as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate EQUIFAX INC (EFX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, impressive record of earnings per share growth, compelling growth in net income, revenue growth and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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.
  • EQUIFAX INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. 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 company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Professional Services industry average. The net income increased by 65.7% when compared to the same quarter one year prior, rising from $46.30 million to $76.70 million.
  • EFX's revenue growth trails the industry average of 19.7%. Since the same quarter one year prior, revenues slightly increased by 8.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for EQUIFAX INC is rather high; currently it is at 65.91%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.25% is above that of the industry average.
  • You can view the full analysis from the report here: EFX Ratings Report

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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