Experian PLC's (LSE:EXPN) surprise $1 billion share buyback plan drew support from analysts, who see it as a timely move to restore confidence after a sharp fall in the credit data firm’s share price.
The FTSE 100 group unveiled the programme on Thursday, saying it will run until June 2027. The announcement helped lift the shares off two-year lows, though they remain down around 20% so far this year.
Peel Hunt noted that Experian’s valuation has dropped to decade-low levels, despite the company guiding for 15% earnings growth this year and stronger margins.
Analysts said it was "a buying opportunity", similar to those presented by the 2007/8 global financial crisis and the consumer competitive reset/'Brazil breakdown' of the mid 2010s, pointing to a forward P/E of 19, well below historical averages.
Stifel also backed the move, calling it “a sensible reaction to recent share price weakness”.
Leverage is expected to remain comfortable at 1.5 times EBITDA, analysts said, leaving room for investment and further M&A.
Both sets of analysts highlighted that investor concerns over AI disruption and a muted third-quarter update have weighed on sentiment.
But with organic revenue growth running ahead of historical trends and cash generation strong, Stifel said believe the current valuation provides "an attractive entry point into a consistent compounder with a strong track record".