15th January 2016
An uncertain economy will boost the need for credit checking, meaning Experian shares are a good bet for investors.
Experian’s third quarter results revealed organic revenue growth of 6%, which was inline with expectations. However, foreign exchange is likely to be a headwind to final results.
The Share Centre investment research analyst Graham Spooner said full year guidance was unchanged as organic revenue growth was expected to be ‘in the mid-single digits range, as growth looks solid’.
‘Total organic revenue growth was 6% in Q3 at a constant foreign exchange rate. Experian believes foreign exchange is likely to be a headwind to final results,’ he said.
However, an ‘uncertain economy should see increasing demand for Experian’s service’, he added.
‘We continue to rate this stock as a ‘buy’ recommendation for medium risk investors looking for steady long-term growth,’ said Spooner.
‘Attractions include solid returns, strong cash flow, limited concerns over competition, and a diversification strategy that has moved it away from relying on the bank sector.’