Investors recommended to ‘buy’ as Experian reiterates growth expectations

As Experian reports positive Q1 results Graham Spooner, investment research analyst at The Share Centre, explains what it means for investors and why they are recommended to ‘buy' the stock.
 
"Experian reported positive Q1 results this morning and reiterated its full year aims for mid to high single digit revenue growth.  Data from The Share Centre's Profit Watch UK shows this would represent a significant improvement on its sector's performance last year, as revenues rose by just 3%
 
"The move into emerging markets has helped offset sluggish performance in the UK and Europe. Latin America continues to have the strongest growth with a revenue increase for Q1 of 10%.
 
"In the shorter term investors should be aware that headwinds may come from the unsettled situation in Brazil. However, longer term attractions remain including solid returns, strong cash flow, limited concerns over competition and a diversification strategy that has moved it away from relying on the bank sector.
 
"This improving track record has not gone unnoticed by the market and the shares are currently highly valued, trading on around 18.6 times 2014 earnings with a prospective yield of around 2.1%. However, we continue to recommend Experian as a ‘buy' for medium risk investors looking for steady long term growth. The shares have long been one of our favourites and have risen over 140% since our initial recommendation."