Experian (LSE:EXPN) has been upgraded by Deutsche Bank to 'buy' from 'hold' on the potential for strong future growth driven by strategic investments in key platforms.
The share price target was hiked by 1,200p to 4,750p in the note, with Deutsche citing the credit checking agency's recent focus on hyperscaling — a phase of rapid business growth — as the basis for the upgrade.
Over the past five years, Experian (LSE:EXPN) has invested heavily in building a large base of direct-to-consumer (D2C) members, migrating its infrastructure to the cloud, expanding into new business areas such as insurance, and developing key business-to-business (B2B) platforms like Ascend and PowerCurve.
With these investments now reaching maturity, Deutsche expects the FTSE 100 group to achieve organic growth of more than 9% annually from fiscal year 2026 to 2027, alongside expanding profit margins, which are projected to exceed 29% by 2027.
On the B2B side, the German bank highlighted the significance of Ascend and PowerCurve. These cloud-based platforms are expected to drive product upgrades and support a shift toward recurring license-based fees from clients.
According to the research note, the platforms will enable rapid scaling of new products directly within client workflows, making them integral to Experian’s growth strategy in the coming years.
Experian’s consumer business is also expected to benefit from its direct relationship with 180 million free members, which provides opportunities for direct revenue generation through subscription services.
In morning trading, the stock was up 1% at 3,898p.