For most investors, Experian PLC (LSE:EXPN) is the kind of stock that quietly drifts under the radar. But, according to analysts at Stifel, it might just be getting ready to shift up a gear.
In a new note initiating coverage, the broker has slapped a 'buy' rating on the data and credit-checking giant, pinning a price target of 4,400p on the shares.
That suggests a bit of headroom for upside, but it's the longer-term story that has Stifel intrigued.
Experian has carved out a strong position as a tech-powered data business serving both companies and individuals.
More than 200 million people use its services, and it pulls in around $7.5 billion in annual revenue.
What impresses Stifel is the group's steady record of growth and savvy use of free cash flow. Since 2006, it has spent over $11 billion on acquisitions, helping to push it beyond the old-school credit bureau model.
The real kicker, in the American bank's view, is the Ascend platform, a unified data tool spanning everything from fraud checks to marketing.
The analysts reckon the business can keep compounding, with organic growth in the high single digits and steady margin improvement. If it redeploys its $6.6 billion firepower wisely, earnings could climb 50% or more by 2028.
With shares trading on about 28.5 times forward earnings, Experian isn't a bargain, but Stifel argues the premium is justified given the group's quality and consistency.
In morning trading, the stock was up 12p at 3,760p.