This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
10 November 2015
Shares in credit-checker Experian (EXPN) are faring best against a receding market tide today, gaining strongly on well-received interim results including improved organic growth, a slight upwards revision to full-year guidance (in the face of continued macro and currency headwinds) and a small but nonetheless welcome 2% hike to the dividend. A 33% boost to its $600m share buyback programme is also helping to boost sentiment as the company looks to deploys proceeds from recent divestments. While news of a recent isolated US server breach (which affected none of its 15m US clients or their financial information, but did put them at risk) is enough to give any company or shareholder the jitters right now, news of very handy and sensible insurance against any unfavourable outcome from US class-action lawsuits is putting investors at ease while regulatory and governmental investigations are ongoing. As they say, where there’s blame there’s a claim, but effective positive spin is easily drowning out revenues -6% and much squeezed margins from profits -14%. Rally back towards all-time highs.
Mike van Dulken, Head of Research
This research is produced by Accendo Markets Limited. Research produced and disseminated by Accendo Markets is classified as non-independent research, and is therefore a marketing communication. This investment research has not been prepared in accordance with legal requirements designed to promote its independence and it is not subject to the prohibition on dealing ahead of the dissemination of investment research. This research does not constitute a personal recommendation or offer to enter into a transaction or an investment, and is produced and distributed for information purposes only.
Accendo Markets considers opinions and information contained within the research to be valid when published, and gives no warranty as to the investments referred to in this material. The income from the investments referred to may go down as well as up, and investors may realise losses on investments. The past performance of a particular investment is not necessarily a guide to its future performance. Prepared by Michael van Dulken, Head of Research
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