Broker snap: Experian has superior growth, says Nomura

13th Jul 2012 10:46

Nomura has reiterated its 'buy' rating and 1,035p target price for Experian after first-quarter results from the financial data company came in slightly ahead of forecasts.Organic growth in the first three months of the fiscal year was 9%, ahead of the broker's 8% estimate, driven by 18% growth in Latin America."The slight beat came from North America which was up 8% vs. our 6%, and which offset slightly lower growth in UK & Ireland, 4% vs. our 5%, and EMEA/Asia Pacific, 4% vs. our 5%."The company is guiding for high single-digit organic revenue growth and in-line EBIT (earnings before interest and tax) progressions for the first half. It also maintained its full-year guidance of mid to high single-digit organic revenue growth.The broker says that shares are trading at around 18 times current-year earnings. "We believe the premium valuation is justified by superior growth vs. the rest of the sector."Despite the first-quarter beat, by 10:45 on Friday, shares were trading 2.68% lower at 925.5p.BC