A leading provider of information solutions Equifax Inc. (
The new solution, named “Anakam Identity Authentication for Tokens,” is an easily-deployable service that allows an enterprise and/or agency to remotely verify the exact identity of the person logging on to the device through a temporary or permanent alternate authentication process.
This is expected to offer some effective solution for the large enterprises and government agencies and provide better security and protection measures to end customers. However, new product launches failed to substantially impact revenues in 2010. Management currently expects to generate incremental revenue from new products in 2011.
Moreover, the company has now shifted its focus to small business customers, having launched a service targeting small businesses. The service is intended to help them monitor and strengthen their own credit performance and also the credit health of the companies they deal with. We expect the initiative to open up a new source of revenue for the company.
Further, Equifax is also enhancing the portfolio of its credit monitoring solutions. Additional services are offered by Equifax that monitor personal credit and prevent identity theft, thereby helping one to secure debt quickly.
In this context, it is worth mentioning that “Equifax Debt Wise,” a new application that generates a process of debt payoff by analyzing accounts and identifying one as the target account. As the debt in a particular account is paid of, the next debt in line moves up and automatically becomes the target account. The demand for this solution will move up with the upside in financial markets.
We believe Equifax is well positioned to benefit from its leadership in important markets, heightened consumer concern regarding identity theft and strength in international markets. With the sale of its direct marketing division, the company is now increasing its focus on its core business. The company is also in an expansion mode through new product launches and international growth. However, given the strong correlation to consumer and financial markets, as well as the company’s U.S. exposure, improvement in results will be at par with the country’s economic recovery.
Currently, Equifax holds a Zacks #4 Rank, implying a short-term Sell rating.
EQUIFAX INC (EFX): Free Stock Analysis Report
Zacks Investment Research
Be the first to comment