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Deutsche Bank downgrades Experian on forecasts of slower second half growth

The bank said while increased monetisation of its subscriber base could provide potential upsides, an improved growth outlook had already been priced into its forecasts

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Despite the downgrade, Deutsche upped its price target for the stock to 1800p from 1750p

Experian PLC (LON:EXPN) has been downgraded to ‘Hold’ from ‘Buy’ by analysts at Deutsche Bank as they forecast slower growth in the second half of the company’s financial year.

The German bank said while increased monetisation of its subscriber base could provide potential upsides, the improved growth outlook for the FTSE 100 consumer credit reporter had already been priced into its forecasts.

READ: Experian shares gain as 2018 revenues rise on growth in B2B division

“Experian is now pricing in ongoing high single digit growth, however, we expect the company will see slower growth in H2” said Deutsche’s analysts.

They added: “Whilst the stock deserves a higher rating for faster growth,after the recent rise in the stock we downgrade from Buy to Hold”.

Despite the downgraded rating, Deutsche upped its price target for the stock to 1800p from 1750p.

Experian shares have seen a strong share performance in the last month, rising around 8.4% to 1,883p at last close on 8 June.

The growth was bolstered by a strong set of full-year results in mid-May, when the firm reported a 7.5% increase in full year revenue, while pre-tax profit from ongoing activities rose 7.3% to US$1.21bn from US$1.12bn.

In early-morning trading Monday, Experian shares were down 0.24% at 1,878.5p.

Quick facts: Experian

Price: 2813 GBX

LSE:EXPN
Market: LSE
Market Cap: £25.55 billion
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