JP Morgan reiterated its ‘overweight” rating on Experian and made the credit checker its “top idea” after a recent decline in the share price.
Product innovation is strong and excluding Covid-19 margins have been stable despite material IT investment and other spending, JP Morgan said. Experian’s cash generation is “best in class” and the company should have strong organic growth based on a recovering credit business and new products, the bank said.
JP Morgan analyst Sylvia Barker stuck to her ‘overweight’ rating and price target of £32 compared with a price of £24.41 at the time of publication. The shares have dropped from £27.77 at the end of December.
“This is an interesting time to be considering the Experian investment case as the stock has de-rated while fundamentals look attractive,” Barker said. “We believe fiscal 2022 should see strong organic growth … There are also several drivers for margin expansion.”
Experian shares were little changed at £24.46 at 11:17 GMT.
