In a report released today, Will Kirkness from Bernstein reiterated a Sell rating on Experian, with a price target of p3,150.00.
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Will Kirkness has given his Sell rating due to a combination of factors impacting Experian’s growth prospects and market positioning. Despite the company’s 9% organic growth in the second quarter and promising margin expectations, there are concerns about the sustainability of growth from new products and services. The increasing overlap of growth drivers with competitors and potential pricing pressures from AI advancements contribute to a less favorable risk/reward profile.
Additionally, the disruption in the mortgage market and heightened competition pose challenges for Experian. The introduction of VantageScore as a competitor to FICO in the US mortgage market could pressure Experian to enhance services at lower costs, impacting revenue. While there is potential for margin improvements, Kirkness remains cautious, noting that Experian’s earnings per share estimates for FY26 and FY27 are below consensus, leading to a reiteration of the Underperform rating.