Q: Analysts are suggesting $16.00 target on this stock. Your expert analysis please?
5i Research Answer:
EFX pays a small yield of 1.1%, its debt levels have increased over the years, it's not profitable but trades at a cheap valuation and it issues debt to fund some of its operations. Aside from its debt, its balance sheet is OK, and both sales and earnings estimates are expected to be solid in the next two years. If the energy markets begin to stabilize, we could see this name finding a floor around its current price due to its relative valuation. If growth begins to materialize in its future earnings reports, as analysts expect, we could see the name continuing higher due to its cheap valuation.