Experian Share Price (LON: EXPN) Hit Highs As Analysts Upgrade

Experian's share price (LON: EXPN) has continued on an upward trend over the past 12 months, with today's 2.1% gain bringing the 12 month increase to to an impressive 47%. This has unsurprisingly led EXPN to hit new 52 week and all-time-highs in trading of 3,963.

Alongside operational successes at the global information services group, there has also been an upgrade coming in RBC that hikes the Experian price target to 4,200.

Operationally, the company's ROCE currently stands at an impressive 20%, which comfortably surpasses the industry average of 16%. This indicates that Experian is not only managing its capital effectively but also generating returns that are noteworthy within its sector.

Even more impressive is Experian's consistent delivery of a 20% ROCE over the past five years. During this time frame, the company has achieved a 67% increase in the capital it has employed. Despite this significant expansion, Experian has maintained its profitability ratios, a positive sign for potential investors. This steady operational performance points towards a business that has the potential to compound its growth efficiently and sustainably.

Market analysts are taking note of these positive trends. RBC Capital has shifted its rating on the stock from a negative “Underperform” to a more optimistic “Sector Perform.” This upgrade comes alongside a substantial hike in the price target from 2500 to 4200. Others including Bernstein SocGen Group, Morgan Stanley, and CFRA have also lifted their price targets for Experian shares, pointing to the firm's consistently strong performance, even amidst varying economic climates, as well as the strategic value of platforms such as Ascend analytics.

For the fiscal year 2025, Experian envisions organic revenue growth in the range of 6%-8% and a notable margin enhancement of 30-50 basis points. CFRA supports this outlook, projecting similar revenue growth figures for fiscal years 2025 and 2026. This future trajectory is further bolstered by Experian's impressive history of dividend payouts, which have risen for three years in a row, demonstrating a 45-year continuous commitment to shareholder returns.