Uncertain economy is boost to Experian: ‘buy’

15th January 2016

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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.’

 

 

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