Shares in Experian PLC (LSE:EXPN) fell to a two-year low despite the credit checking giant reporting 8% organic growth in the past quarter, in line with expectations and keeping full-year guidance unchanged.
In a thiurd-quarter update from the FTSE 100 group is said it expects 8% growth in the final quarter of its financial year.
Organic growth remained strongest in the US at 10%, continuing at the same rate of growth as in the first half, while LatAm growth improved to 6% from 4%, and the UK improved to 3% from 1%, offsetting softening in EMEA and Asia Pacific to 3% from 6%.
Consumer (10%) remained stronger than B2B (7%), helped by accelerated performances in LatAm and the UK.
The shares have fallen 21% over the last year, which analysts at Panmure Liberum said contrasts with their expectation of 15% earnings per share growth for and small upgrades at May's final results and November's interims.
"There are a number of reasons for this," they said, including a weaker US dollar, competitive pressure from Fair Isaac's (FICO) direct licencing, the Trump administration's threat to cap card fees, and AI.
"The former are distractions and the latter, with open banking, is both an opportunity (TAM growth, productivity benefit) and threat (more competition). Experian's moat is rock solid."
In light of this belief, they said the derating in the shares, trading on a 22x PE ratio for 15% EPS growth, 13.5x on an EV/EBITDA basis and 5% FCF yield, "is a buying opportunity".