Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Credit given: UBS raises stance for Experian to 'buy' ahead of trading update

In a note to clients, the UBS analysts said: “We believe 2018 will likely see Experian start to accelerate organic growth from c4% back towards >7%, for the first time since 2013”
Credit checking
The Swiss bank's analysts also raised their price target for Experian to 1,900p from 1,630p

UBS has upgraded its rating for Experian Group PLC (LON:EXPN) to ‘buy’ from ‘neutral’ ahead of a third quarter trading update from the credit checking firm due on January 18, saying it expects a return to organic growth of more than 7% in the next few years.

In late morning trading, the FTSE 100-listed firm’s shares were 1.2%, or 20.5p higher at 1,669.5p, with the Swiss bank also raising its price target for the stock to 1,900p from 1,630p.

READ: Experian sees spike in enrolments after data breach at Equifax as it reports first half profit growth

In a note to clients, the UBS analysts said: “We believe 2018 will likely see Experian start to accelerate organic growth from c4% back towards >7%, for the first time since 2013.”

They added: “The key factor, in our view, will be B2C swinging from negative into positive growth, but we also expect help from new B2B contracts and upside in Latam.”

The analysts said the trends may be unchanged for the third quarter, but expects improvement to 6% growth for the fourth quarter of 2017 and see 7%-8% growth for full year 2020.

READ: Stronger headwinds to slow growth at Experian, Morgan Stanley says

Ahead of this expected pick-up, the analysts raised their earnings per share forecasts for Experian, taking them to around 8% ahead of full year 2020 consensus.

They said that, having underperformed since September 16, Experian shares currently trade on a price/earnings ratio of 21 times 2019 estimates, only around a 45% premium to the market against a premium of around 80% last time growth reached  over 7%.

View full EXPN profile View Profile

Experian Timeline

Related Articles

money
August 23 2018
PCF has taken on more than 2,400 new customers and retail deposits have increased to £108mln since it started as a fully-operational bank in July 2017.
Car
September 25 2018
Advantage Finance motor division continues to receive more than 80,000 applications for loans a month and customer numbers now stand at a record 58,000

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use