<b>Credit Suisse expects a re-rating at Experian, upgrades to 'outperform'
08 April 2015 11:26</b>
Experian shares received a boost on Wednesday by Credit Suisse which lifted its stance on the information services and credit checking group from 'neutral' to 'outperform' and hiked its target price from 1,100p to 1,300p.
"The combination of accelerating organic growth, an on-going buyback scheme, prodigious cash generation and optimised balance sheet will drive a re-rating in our view," the bank said.
Organic growth, estimated at just 0.5% in the year ended March 2015, is forecast to accelerate to 4% this year as headwinds in consumer services and from the World Cup in Brazil pass.
At current prices, the stock trades at 17 times calendar year earnings for next year, a 5% premium to the FTSE Europe compared with its historical average premium of 43%.
Shares were trading 3.1% higher at 1,186p by 11:36.
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