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Credit check company chalks up strong trading

Experian £19.60

Gain to date: 2%

Original entry point: Buy at £18.69, 09 August 2018

We flagged Experian (EXPN) as a Great Idea in August at £18.69 on a combination of earnings growth and an appealing valuation.

Although the shares sold off with other growth stocks last quarter they quickly rebounded and thanks to a recent trading update (13 Nov) they are back above our initial entry point.

Demand for its products and services continues to grow with like-for-like sales increasing 8% in the first half leading the company to raise its guidance for full-year sales and earnings before interest and tax (EBIT).

Sales to clients in North America are particularly strong thanks to demand for its mortgage data. Also its Ascend ‘big data’ product has been adopted by all their big US clients and a version is being rolled out to mid-market clients.

EMEA/Asia-Pacific sales are also strong thanks to new business wins in the consumer-lending market.

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