Equifax's (EFX) transformation to a cloud-native platform is "not a long-term competitive moat" as the company also did not revise its long-term growth guidance due to delays in the cloud platform migration and slowdown in the mortgage market, BofA Securities said in a Monday note.

A mortgage market recovery is important for the company's growth but its timing is "highly uncertain," analyst Joshua Dennerlein wrote.

At its Investor Day, Equifax mostly talked about its new cloud-native platform but it did not provide them a competitive edge in the long term as the firm's value lies in "their data not their infrastructure," the analyst wrote.

"We acknowledge that a lot of time and effort went into the overhaul of the company's infrastructure," Dennerlein said.

BofA Securities downgraded Equifax to neutral from buy and lowered its price target to $285 from $300.

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