Shares in Experian (LON:EXPN) have fallen into the red in today’s session as Deutsche Bank trimmed its stance on the blue-chip credit checker. Proactive Investors quoted the analysts as arguing that while increased monetisation of the company’s subscriber base could provide potential upsides, an improved growth outlook had already been priced into its forecasts.
As of 14:13 BST, Experian’s share price had given up 0.74 percent to 1,869.00p, underperforming the broader London market, with the benchmark FTSE 100 index currently standing 0.54 percent higher at 7,722.66 points. The group’s shares have added more than 15 percent to their value over the past year, as compared with about a 2.6-percent gain in the Footsie.
Deutsche Bank trims rating on Experian
Deutsche Bank downgraded its rating on Experian from ‘buy’ to ‘hold’ today, while hiking its price target on the shares from 1,750p to 1,800p. Proactive Investors quoted the analysts as explaining that while the FTSE 100 company was now pricing in ongoing high single digit growth, they expected that the group would see slower growth in the second half of its financial year.
“Whilst the stock deserves a higher rating for faster growth, after the recent rise in the stock we downgrade from Buy to Hold,” the broker pointed out.
Experian updated investors on its full-year performance last month, reporting organic growth of eight percent in the last quarter of its financial year. The group further revealed that its North America Consumer Services division had returned to growth during the quarter, while trends in the UK had continued to improve.
Other analysts on blue-chip group
Shore Capital meanwhile continues to see Experian as a ‘buy,’ without specifying a price target on the shares. According to MarketBeat, the blue-chip credit checker currently has a consensus ‘buy’ rating and an average price target of 1,843.75p.