UBS sees nearly 50% upside for Experian PLC (LSE:EXPN) shares despite a market still nervous about artificial intelligence disruption, with analysts arguing that the credit data group’s fundamentals remain strong enough to rebuild investor confidence.
The Swiss bank repeated a Buy rating, and lifted its price target to 3,870p from 3,700p, implying around 47% upside from current levels.
Analysts said Experian’s current valuation appears to price in only around 4% mid-term profit compound annual growth, while UBS forecasts 12% growth in FY27 and a 10% mid-term CAGR.
The bullish UBS note comes after what UBS described as strong FY26 results, with organic growth accelerating to 9% year-on-year in the fourth quarter from 8% across the first three quarters.
Investor feedback has focused on the organic growth outlook, with Experian’s 6-8% guidance for the year to March 2027 seen as slightly underwhelming given recent momentum.
UBS, however, said the broader picture remains robust, pointing to confidence in Latin America, where Brazil is rebounding into double-digit growth, a solid EMEA/APAC and UK&I backdrop, and continued strength in North America B2B.
“General market sentiment remains very wary of the risks of AI-related disruption,” UBS said, but added that Experian remains well placed because its barriers to entry are intact, its own use of AI is accelerating, and its addressable markets continue to expand.