Zacks Investment Research downgraded shares of Equifax Inc. (EFX) from OUTPERFORM to NEUTRAL on June 21, 2013, with a target price of $62.00.
Equifax delivered modest first quarter 2013 earnings, in line with the Zacks Consensus Estimate. But revenue growth and margin expansion were impressive. Management also provided decent second quarter guidance. Management's focus on product innovation, broadening data assets through acquisitions, continued share gains in North America and divesting of non-core assets were encouraging. We believe that Equifax is well positioned to benefit from improving lending activities in the U.S., broad exposure into the booming insurance sector and growing demand for its Workforce Solutions products. However, volatility in Mortgage sector, currency fluctuations and stiff competition in Brazil are concerns. We thus downgrade the stock from Outperform to Neutral.
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