RBC downgrades Equifax on lack of visibility into 2023

RBC Capital analyst Ashish Sabadra downgraded Equifax (EFX) to Sector Perform from Outperform with a price target of $158, down from $195. Moderating revenue growth, mortgage and current headwinds, a potential slowdown in consumer lending and higher interest expense could weigh on the company’s fiscal 2023, Sabadra tells investors in a research note. The analyst now expects “flattish” fiscal 2023 revenue and earnings growth, below consensus estimates, due to the lack of visibility. He adds that shares of TransUnion (TRU) are trading at a “significant discount” to Equifax.