RBC Capital has reduced its price target on Equifax (EFX) to $222.00 from $250.00 while maintaining an Outperform rating on the shares. The bank noted that its new objective sits near InvestingPro's Fair Value assessment, implying potential undervaluation after the stock declined 22.21% over the past year.
Projected revenue drivers
In its review, RBC highlighted expectations that Equifax's Online Brand Building Business - abbreviated OBBB - should help accelerate revenue from Verification and Government channels in the second half of 2026 and into 2027. The firm also said that improved consumer lending activity is expected to bolster growth within Equifax's USIS Diversified Markets segment.
RBC noted that its mortgage market assumptions are conservative, modeling a low-single-digit decline. The analyst house believes those conservative assumptions likely leave room for upside relative to the company's guidance if market conditions perform better than modeled.
Regulatory and headline risks
The firm said it is monitoring Federal Housing Finance Agency-related and other regulatory headline risks. However, RBC assessed the probability of a structural shift from tri-merge to bi-merge credit reporting as low. The note emphasized Equifax's proprietary consumer credit and employment data, which when combined with alternative data sets, represent a notable competitive advantage for the company.
RBC argued that the recent sell-off, which it attributes in part to concerns about generative AI, has created what the firm views as an attractive buying opportunity given Equifax's data assets and positioning.
Recent financial results and partnerships
Equifax reported fourth-quarter 2025 earnings that beat expectations. The company posted adjusted earnings per share of $2.09, above the $2.05 consensus, and revenue of $1.55 billion versus an anticipated $1.53 billion.
Separately, Equifax and Gen Digital expanded a strategic partnership to enhance consumer financial and digital management capabilities. Under the agreement, Gen Digital will use Equifax data to improve identity protection and financial wellness recommendations across its brands, including Norton and LifeLock. Equifax, in turn, will deploy Gen's Engine platform to deliver personalized financial-product recommendations to myEquifax users in the United States.
Bottom line
RBC's adjustment of its price target to $222 reflects a recalibration of near-term market concerns while preserving a constructive view on Equifax's longer-term revenue prospects tied to OBBB, Verification and Government sales, and recovery in consumer lending. The firm continues to monitor regulatory developments and mortgage market dynamics, but believes Equifax's data assets provide a durable competitive edge.