Broker snap: More potential for growth at Experian

15th Apr 2010 10:24

The improvement in the fourth quarter organic growth rate at credit checker Experian 'bodes well for the new financial year' but Charles Stanley says it is probably still too early to uncork the champagne.The broker notes that 'there was a large swing in the performance of Decision Analytics which showed flat Q4 [fourth quarter] compared to a 9% decline in Q3,' while 'Interactive was better largely due to easier comparatives,' but the key Credit Services division saw organic revenue down 5% year on year.The broker is looking for growth to resume in the Credit Services division early in the new financial year.Meanwhile, Latin America, particularly Brazil, has been the main engine of growth but North America remains the largest part of Experian's business so the return to growth in the group's fourth quarter 'is an encouraging sign', investment analyst Tony Shepard said.'Although the share price has revived over the last year, we see further potential as organic growth returns to more normal levels of growth in 2011,' Charles Stanley said, adding that its 'buy' recommendation remains unchanged.