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Experian ready for data revolution

The information services giant has been investing heavily in data sources and new products
February 22, 2018

New regulation is often seen as presenting challenges for companies, but it also create opportunities for major players to cement their competitive position in a market. We think the positives of new data regulation far outweigh the negatives for Experian (EXPN) and that the company has the right strategy to squeeze the maximum benefit from this changing regulatory landscape.

IC TIP: Buy at 1,558p
Tip style
Income
Risk rating
Low
Timescale
Long Term
Bull points

Growing range of products
Regulation creating competitive advantage
Strong B2B growth
Re-positioning operations

Bear points

Security risk
Weak consumer services business

The forthcoming introduction of General Data Protection Regulation (GDPR) in the EU is expected to be followed by similar major regulation in North America. The increased regulatory burden GDPR will bring can be expected to produce extra cost for Experian as it readies itself to deal with the new regime. However, the information group's scale means it looks well placed to deal with complex new rules and emerge as a company that is able to make regulatory compliance easier for its customers and, importantly, reap solid returns on whatever investment it has to make. In all, the regulation should favour the competitive position of companies with substantial scale, resources and expertise, such as Experian.

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