Equifax Inc.’s stock shed 0.9% in morning trade Monday, after the credit reporting company was downgraded at RBC Capital, which cited continued uncertainties surrounding the effects of the massive data breach unveiled last month. Analyst Gary Bisbee cut his rating to sector perform, after being at outperform since August 2015. “Following a health rally off the post-breach lows, we are downgrading Equifax to sector perform,” Bisbee wrote in a note to clients. “We expect the stock to be range-bound for several quarters as the breach impact plays out and until a number of uncertainties begin to clear up.” The stock had tumbled 35% in the week after the breach was unveiled to a two-year low of $92.98 on Sept. 15, then bounced as much as 22% to $113.54 on Oct. 10, before pulling back slightly. Among the “uncertainties” Bisbee notes are how much the underlying earnings power will be hurt by the breach, how much market share will be lost, how will the regulatory environment change and how long with the breach impact work through financials. The stock has shed 7.8% year to date, while the S&P 500 has gained 15%.
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