Experian PLC (LSE:EXPN) is entering a phase of faster growth and stronger cash generation, according to Panmure Liberum, which described the group as a “data category killer” and “one of the best companies listed in the UK.”
The broker expects the FTRSE 100-listed credit data specialist to deliver 7.5-8% annual organic growth between this year and 2028.
This is based on Experan's efforts to monetise 205 million 'freemium' consumer subscribers through new products such as an insurance marketplace.
Margins are forecast to climb 30-50 basis points a year, reaching above 29% by the 2028 financial year, while capital spending is expected to ease from 9% to 7% of sales, driving free cash flow growth of around 15% annually.
Experian’s current exposure to the US mortgage market is limited, at roughly 3% of sales, less than half of which stems from FICO scores.
The shares, which have pulled back on dollar weakness and sector jitters, trade on 14.7x times EBITDA for the 2026 calendar year, close to their long-term average.
A target price of 4,450p, has been set by the broker, compared to the last close at 3,549p.