In a report released today, Will Kirkness from Bernstein reiterated a Sell rating on Experian, with a price target of p3,050.00.
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Will Kirkness has given his Sell rating due to a combination of factors impacting Experian’s growth prospects and market position. The ongoing debates around credit supply and the value of data have created an uncertain environment, which has not been favorable for Experian’s valuation. Kirkness highlights that Experian’s organic growth is projected to be 3% below consensus by FY27, which is a significant factor in maintaining an Underperform rating.
Additionally, isolated incidents such as credit fraud and bankruptcies have the potential to disrupt credit supply, although these are currently seen as short-lived issues. The competitive landscape in data, particularly with mortgage profiling and actions from FICO, poses further challenges. While Experian is at the forefront of data developments, the rapid changes driven by automation and AI could lead to shifts in market share and pricing pressures. Kirkness also notes that their EPS estimates are 9% below consensus for FY27, further justifying the Sell rating.
Based on the recent corporate insider activity of 9 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of EXPGF in relation to earlier this year.