Did New Deepfake Detection in Kount 360 Just Shift Equifax’s (EFX) Investment Narrative?

• Earlier this month, Equifax launched Identity Proofing within its Kount 360 platform, introducing integrated document verification, facial recognition biometric checks, and deepfake detection to enhance identity verification and fraud prevention for businesses across key sectors.
• This release leverages advanced AI technology and compliance-focused features to address growing regulatory and fraud threats, streamlining customer onboarding and integrating multiple layers of security within a single solution.
• We'll assess how the introduction of deepfake detection and biometric verification could influence Equifax's broader investment narrative and growth outlook.

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Equifax Investment Narrative Recap

To own Equifax as a shareholder, you have to believe in its ability to keep expanding its data-driven solutions across industries amid persistent risks from rising legal costs and competitive pressures. The launch of Identity Proofing and deepfake detection strengthens Equifax's offering in identity verification but does not significantly shift the immediate catalysts or overcome the biggest current risk, ongoing expense pressures related to litigation. Investors are still watching for meaningful progress on managing these costs relative to revenue growth.

Of the recent announcements, the June rollout of Complete Income, a solution aimed at government agencies, is most relevant, as it reflects Equifax’s ongoing focus on compliance-ready, high-value verification products. While this supports the growth catalyst of rising government demand for verification, it still sits alongside the company’s exposure to revenue volatility from unpredictable state budgets.

By contrast, investors should be aware that while new products aim to boost growth, Equifax’s rising litigation and legal costs may still...

Read the full narrative on Equifax (it's free!)

Equifax's outlook anticipates $7.8 billion in revenue and $1.3 billion in earnings by 2028. This scenario requires a 9.9% annual revenue growth rate and an earnings increase of $660 million from the current earnings of $639.7 million.

Uncover how Equifax's forecasts yield a $280.50 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Five members of the Simply Wall St Community estimate fair values from US$256.57 to US$371.20 per share. With ongoing expense pressures from litigation, community members’ differing views reflect wide debate about the company’s future potential and profitability.

Explore 5 other fair value estimates on Equifax - why the stock might be worth as much as 45% more than the current price!

Build Your Own Equifax Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Equifax research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Equifax research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Equifax's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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