Stifel initiates Experian stock coverage with Buy rating on growth outlook

Published 16/06/2025, 10:10
Stifel initiates Experian stock coverage with Buy rating on growth outlook

Stifel initiated coverage of Experian Plc . (LON:EXPN:LN) (OTC:EXPGY) with a Buy rating and a price target of GBP44.00 on Monday. According to InvestingPro data, the company currently trades at a P/E ratio of 39.8x and commands a market capitalization of $46.7 billion, with analysts maintaining a strong buy consensus.

The global data and technology company provides data, analytics, and software services to businesses and consumers, with more than 200 million free members. Stifel highlighted Experian (OTC:EXPGF)’s "well-earned reputation as a consistent compounder," noting the company has deployed over $11 billion into acquisitions since 2006 to support earnings growth and expand beyond its credit bureau core. InvestingPro analysis reveals the company has maintained strong financial performance, with revenue growing at 6% over the last twelve months to reach $7.5 billion.

The research firm identified several competitive advantages for Experian, including its $7.5 billion revenue scale, breadth across B2B and B2C markets, track record of product innovation, and development of the Ascend platform. This platform integrates the company’s offerings across credit risk, decisioning, fraud prevention, and marketing.

Stifel expressed confidence in Experian’s medium-term financial targets of high-single digit organic growth and annual EBIT margin improvement of 30-50 basis points, noting the company made "strong progress" toward these goals in fiscal year 2025. InvestingPro data shows the company maintains a solid financial health score and has consistently paid dividends for 46 consecutive years, with additional ProTips available to subscribers.

The research firm also outlined a potential "blue-sky scenario" where Experian’s run-rate EBIT could increase by more than 50% by fiscal year 2028 if the company deploys its $6.6 billion headroom into mergers and acquisitions.

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