RBC Capital upgrades Experian to ‘outperform’

The bank said improved credit marketing should drive an inflection in the credit marketplace while integrating the Activate lender model deployment tool should drive lender marketing wallet share gains.

"The insurance marketplace should benefit from three of the top five insurance live on the marketplace," it said.

It also noted that Brazil's growth improved to 9% in 2Q25, driven by 30% growth in Consumer Services.

"Although B2B growth is expected to be muted in FY25 due to the macro headwinds, we expect the new wins to ramp up and the platform integration strategy to accelerate growth over the mid-term," it said.

RBC pointed out that Health and Auto are the top two North American verticals, accounting for 9% and 5% of total revenues, respectively.

"Experian signed the largest health contract in 1H25, which should help accelerate growth," it said.

"Auto growth should reaccelerate as auto lending activity picks up and CDK's disruption headwinds moderate.

"In addition, Experian is leveraging its broad product portfolio to drive an increasing wallet share in these verticals."

RBC said "strong sales momentum for key modules such as Sandbox and Ascend Marketing, the solid pipeline for Fraud Sandbox, penetration opportunities in Ascend Ops, the launch of RegTech, and, importantly, the Ascend Technology Platform can help demonstrate technology leadership and deeply embed within the lender ecosystem and drive robust cross-sell/upsell opportunities".

Finally, it said the recent pullback in the share price has created an attractive buying opportunity

RBC kept the price target at 4,200p.