Morgan Stanley upgrades Experian to 'overweight'

Morgan Stanley upgraded Experian to 'overweight' and increased its price target for the credit checking company on a positive outlook for its business-to-consumer operations.

Trading for Experian has been resilient during Covid-19 and structural growth trends have accelerated further, Morgan Stanley analyst Anvesh Agrawal said. He upgraded the shares from 'equal weight' and increased his price target to £33.30 from £28.20.

"The B2C outlook is even more bullish than we initially anticipated," Agrawal wrote in a note to clients. "The stock remains expensive, as ever, but we find waiting for a pullback has rarely worked. Back to overweight on this multi-year compounder."

Experian increased its guidance for second-quarter revenue in September after stronger trading in July and August. The FTSE 100 company said the upgrade was due to strength in US mortgages and services for consumer.