BofA Restarts Experian Coverage at Buy, Sees 'Low' Downside Risk From AI

MT Newswires · 2d ago
08:00 AM EDT, 07/20/2026 (MT Newswires) -- BofA Global Research restarted its coverage of Experian (EXPN.L) with a buy rating and price objective of 32 pounds sterling, saying the company has a "low" downside risk from artificial intelligence. "In its verticals, we believe Experian owns the fuel to sate AI's appetite. We tackle four key investor debates and conclude in a world of increasing complexity (rising corporate AI adoption, nascent agentic commerce, rapid growth in fraud), Experian is well placed to sustain c8% organic EBIT growth and a 13% 2026-29E EPS [compound annual growth rate]," according to a Monday note. The research firm sees that the data and technology company's competitive moat is expanding as proprietary data, embedded enterprise services, regulation and "powerful megatrends" increase overall industry complexity. The analysts also project that annual margin growth of between 30 basis points and 50 basis points is achievable through the elimination of dual-running technology expenses, bolt-on integration benefits and continued operational leverage. On the capital return front, BofA projects Experian will return $9.9 billion to shareholders by fiscal 2031, representing 30% of its market cap, amid declining capital expenditures and near 100% free cash flow conversion. This shareholder return includes $6 billion in share buybacks, supported by $2 billion already announced in 2026, which helps underpin the research firm's 13% EPS CAGR estimate for fiscal 2026 through 2031.