Adam Gault
Investment thesis
Equifax Inc. (NYSE:EFX) is about to become a more profitable company. CEO Mark Begor said on the Q3-2024 earnings call:
We are energized to be pivoting from building the Equifax Cloud over the past four years
The 'New Equifax' Will Be More Profitable On New Cloud
Summary
- Equifax's transition to its own cloud and EFX.AI capabilities will drive revenue growth, margin expansion, and increased free cash flow, enhancing profitability.
- Lower CapEx and higher margins will boost earnings, with EPS expected to grow significantly, supporting a one-year price target of $306.75 and a Strong Buy rating.
- The new cloud platform will improve productivity, benefiting shareholders with increased returns.
- Despite recent stock volatility, the anticipated growth and financial benefits justify a 20.29% price increase, aligning with Wall Street analysts' positive outlook.
Robert F. Abbott has been investing his family’s accounts since 1995, and in 2010 added options, mainly covered calls and collars with long stocks. He is a freelance writer, and his projects include a website that provides information for new and intermediate-level mutual fund investors. A resident of Airdrie, Alberta, Canada, Robert has earned Bachelor of Arts and Master of Business Administration (MBA) degrees.
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