With April revenues down 5% and the first quarter expected to fall 5-10%, analysts at the Canadian bank said this performance was better than initially feared and suggests the credit checking company was winning market share.
The FTSE 100 group said a day earlier that trading is currently very volatile due to coronavirus pandemic uncertainty, with key revenue drivers varying significantly from week-to-week.
However the shares have also outperformed, wiping out March’s losses and now up more than 4% since the start of the year to its last close price of 2,708p.
“Whilst Covid-19 will impact the business, EXPN appears to be taking share and the investment in consumer is paying off,” the analysts said.
“However, we see the valuation as now more prohibitive for new money” and while upping their target price to 2,700p downgraded to a ‘sector perform’ rating from the previous ‘outperform’.
The stock trades on around 30 times 2022 expected earnings per share, at the top end of the sector, which the analysts felt was justified.
Published at Thu, 21 May 2020 10:06:00 +0000-Experian slips on downgrade from RBC Capital