Federal Government Changes Make Equifax A Buy – Equifax Inc. (NYSE:EFX)

After the September disclosure of the largest consumer information data breach in US history and the significant price decline in its stock, Equifax (EFX) offered investors a high risk-high reward proposition. Equifax was an excellent wide moat business available cheaply because of significant legal and regulatory risks.

While the Trump Administration installed many “business friendly” light touch regulators across the Federal government, the Consumer Financial Protection Bureau was still run by an Obama era appointee. Thus it remained a sizeable risk. We believe with the recent installation of Mick Mulvaney as acting head of the CFPB, the risk reward calculus is now firmly in Equifax’s favor and the stock represents a good opportunity to buy a great business at a fair cost.

In this article, we’ll go through the four major risks to Equifax: regulatory, changes in B2C business, changes in B2B business, and long-term increases in corporate costs and why we don’t think any of them…

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