Deutsche Bank and HSBC optimistic on Experian, despite Brazil

15th Sep 2015 14:43

(ShareCast News) - Shares of Experian were offering an "attractive" valuation after falling afoul of investors' concerns surrounding Brazil, analysts said.Since May the stock has de-rated from about 20 times' 12-month forward earnings to 17 at present, Deutsche Bank analysts explained to clients in a research report.In parallel, 12 month earnings per share of Experian in US dollar terms had risen by 20% while the European markets' earnings per share on the same basis was down by 25%."This relative earnings strength in one of the most innovative companies we cover is not represented in relative valuations similar to those seen during the global financial crisis", the analysts said.Despite that, as they updated their forecasts for changes in currency rates they trimmed their EPS estimates for 2016 and 2017 by 2.3% and 2.9%, respectively, which brought their target price down to 1,250p.The broker maintained its 'buy' recommendation on the firm's shares.On a similar note, HSBC on Tuesday lifted its target for Experian higher to 1,290p from 1,150p, emphasising the growth momentum in its US business, on-going disposals and limited downside risks from Brazil and its Consumer division.