So, What's The Next Move For Equifax?

Equifax Inc. EFX's early response to one of the most devastating security breaches of all time has left plenty to be desired.

The company’s lack of disaster control is sure to set up some tumultuous upcoming quarters.

“With few (if any) positive catalysts, it is only prudent for us to lower our multiple and price target to $115 (prior $150),” said Barclays analyst Manav Patnaik.

Where Does Equifax Go From Here?

Barclays laid out two possibilities. The preferred scenario would be that Equifax weathered the noise and came out stronger than ever, supported by strong industry fundamentals.

The second scenario would be similar to ChoicePoint followingits security breach over a decade ago, where government investigations and bad press weighs on fundamentals and the shares get pummeled.

“Given our positive history with the company and management, we would like to think that EFX is closer to No. 1 than No. 2,” said Patnaik (see his track record here).

The analyst did indicate that a lot of heavy lifting remains in order to satisfy all those that have been effected by the massive data breach, and that we could see more panic selling as PR implications from anger directed at the CEO at the Oct. 3 congressional hearing could weigh on shares.

Barclays maintains its Overweight rating on Equifax.

Related Link: The Tough New Question Investors Are Asking Post Equifax Breach