That caution is understandable. But what often gets overlooked isn’t simply the difference in returns — it’s the point at which money starts generating more wealth than the investor contributes themselves.

When money really begins working

To explore this idea, I stripped out contributions entirely and focused on one simple question: how much of final ISA wealth actually comes from compounding?

The chart below models two savers starting with the same £30,000 lump sum — roughly in line with the average ISA balance. From that point onward, both contribute identical amounts over the following 20 years.

That means only one variable changes: investment return.

The blue line assumes a typical Cash ISA returning 4%. The green line assumes an 8% long-term return more consistent with stock market investing.

The difference is striking.

After 20 years, only around 37% of total wealth in the Cash ISA comes from compounding. At 8%, however, that figure rises to roughly 62%.

That’s the real lesson.

At lower returns, wealth remains driven largely by what the investor puts in. But at higher rates of compounding, the balance shifts. Over time, money begins generating the majority of wealth itself.

And that is arguably the point where investing starts doing the heavy lifting.

Chart generated by author

Quality compounder

One business that increasingly fits this idea of compounding is Experian (LSE:EXPN).

Unlike more cyclical businesses, Experian has built its growth around data, recurring relationships and platforms that become increasingly embedded inside customer operations.

That was evident again in FY26.

Organic revenue rose 8%, while earnings per share climbed 15%. Margins also expanded as cloud migration costs began falling and the growing scale of its platforms improved efficiency.

But what stands out to me is not simply growth — it’s the quality and consistency behind it.

Experian renewed 100% of its large North American strategic accounts, often on longer and higher-value contracts. Across credit, fraud, and identity, its platforms are becoming more deeply integrated into customer workflows, creating higher switching costs and increasingly predictable revenue.

Artificial intelligence is also changing the debate.

Rather than threatening the business model, management believes AI is increasing demand for trusted, regulated, and explainable data. That matters because over 90% of revenue still relies on proprietary data sets and decisioning tools that are difficult to replicate.

What could go wrong?

Competition remains intense and the shares aren’t cheap with a price-to-earnings multiple of 21, meaning expectations are already high. Regulation also remains an important consideration. As a business built around consumer and commercial data, the company operates in tightly governed markets where changes to privacy rules or data usage could affect growth.

Yet, for me, the attraction lies elsewhere.

The earlier chart showed how wealth creation accelerates when compounding is allowed to work uninterrupted. Businesses like Experian operate in much the same way — and it’s exactly why I continue looking for other companies with similar long-term characteristics.

Should you invest £5,000 in Experian Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Experian Plc made the list?

Andrew Mackie does not hold any positions in the companies mentioned.

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Notable supporters

I’m referring to Experian (LSE:EXPN). The global data and analytics powerhouse has seen its share price fall by 32% over the past year.

At the moment, the average target price for the coming year from the 24 contributing analysts is 3,904p. So from the current share price of 2,734p, that’s a potential gain of 43%. Notable inclusions include Barclays, with the research team forecasting 4,500p, and Goldman Sachs at 4,060p.

Of course, these are just subjective views. Even though the analysts are experts in their field, there’s no guarantee that the stock will hit these levels over the next year. But the main takeaway for me is that the broad consensus is that the stock has momentum to head higher, even if the exact price to target is up for discussion.

One eye on the past

Even with the strong outlook, some investors might be concerned with the size of the share price fall in the last year. One reason for this is concern around the broader lending environment. Higher interest rates have slowed mortgage activity and reduced borrowing volumes across parts of the US economy. Experian generates around two-thirds of overall revenue from the US, so that’s a key area. Since Experian earns money from credit checks and lending activity, any slowdown in consumer borrowing can weigh on sentiment.

Another point has been the ongoing battle around credit scoring. The industry is facing disruption from regulatory scrutiny and increased competition from other credit scoring providers. This is a risk going forward, as pricing pressure could hurt profitability in parts of the mortgage ecosystem.

Balancing everything out

Despite the risks, the underlying business continues to perform well. In the latest full-year results, Experian delivered 8% revenue growth, while profits also increased.

More importantly, I like the fact that Experian is becoming less dependent on traditional credit reporting. It has been working on ancillary tools, such as fraud prevention and AI-driven analytics. These are fast-growing markets, which could easily add more significant revenue streams further down the line.

With a price-to-earnings ratio of 23.91, it’s well above the FTSE 100 index average, and therefore not a cheap stock. But if it can shrug off some of the competition and enjoy stronger consumer activity in the US, I believe it could make back a lot of the share price losses from the last year.

So even though I think a 43% rally in the coming year could be a little optimistic, I do feel it’s a stock worth considering for investors.

Jon Smith has no positions in the shares mentioned.

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Two caught my eye — each could be worth a closer look for investors hunting potentially undervalued Footsie shares.

What AI disruption?

Credit checking giant Experian (LSE:EXPN) has suffered a shocking fall from grace, slumping 33% since last summer.

On 18 May, however, UBS maintained a Buy recommendation on the stock, reiterating its 3,700p price target. If that was to come to fruition, which isn’t guaranteed of course, then investors could be looking at a 39% uplift from today’s price.

Experian has sold off in part due to market fears that AI might disrupt parts of the traditional credit-bureau business model. This is a key risk moving forward. 

Yet UBS points out that Experian’s core datasets are proprietary and highly integrated into workflows. Instead of being replaced, Experian is successfully implementing its own AI-driven products while continuing to expand into areas like advanced verification and fraud prevention. 

Here are some forward-thinking deals announced by Experian recently: 

• It has built the UK’s first credit score tool natively inside ChatGPT.
• Embedding analytics data directly into ServiceNow workflows so corporate AI agents can instantly approve loans or flag fraud.
• It has formed a security layer for agentic AI shopping with cybersecurity firm Akamai (helping block malicious bots). 

Back in February, UBS said it was comfortable modelling 10% earnings growth over the medium term. Yet after the sharp pullback, Experian’s trading at just 18 times forward earnings. 

If the firm can continue compounding and quell fears about AI disruption, then the stock is almost certainly undervalued today. The City certainly thinks so, with the average price target among analysts sitting almost 50% higher at 4,048p. 

Note, Experian reports its full-year results tomorrow (20 May), when it’s expected to post 8% organic revenue growth. But all eyes will be on the outlook for FY27 given the ongoing macroeconomic uncertainty. 

Luxury recovery play

The second Footsie stock is luxury fashion group Burberry (LSE:BRBY). The shares have slumped 49% in five years.

However, that hasn’t stopped Deutsche giving the stock a 1,480p price target (35% higher). That would be a welcome outcome for shareholders, who’ve watched Burberry’s sales struggle amid global inflation and weakness in China.

Burberry also went after more affluent customers, but its existing shoppers baulked at the new ultra-luxury prices. Under CEO Joshua Schulman, though, the 170-year-old brand is plotting a turnaround centred upon cost-cutting and refocusing on its iconic trench coats and scarves.

Looking at the FY26 results, there are some very encouraging signs. For a start, Burberry returned to comparable sales growth from Q2, culminating in double-digit growth in Greater China and Americas in Q4.

Meanwhile, adjusted operating profit jumped from £26m to £160m. E-Commerce sales were up strongly, particularly among younger shoppers, and bag sales (including the newer Cotswolds bag) are doing well again.

The biggest current risk is rising inflation, which might cause aspirational shoppers to tighten belts again. Management is cautious for FY27.

But with early signs that Burberry is reinvigorating the brand, a forward earnings multiple of 25 could end up looking cheap a few years from now. As such, I reckon the stock’s worth a closer look.

Ben McPoland has no positions in any of the companies mentioned.

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Experian (LSE:EXPN) shares are down 36% from their highs. So is now the time to strike?

How cheap is the stock?

In valuation terms, Experian shares look like a once-in-a-decade opportunity. The stock is trading at a price-to-book (P/B) ratio of 5.9.

Source: Fiscal.ai

The last few months aside, it hasn’t traded at that level in the last 10 years. On average, it’s been more like 8.98.

If it gets back to this level, investors are looking at a 52% gain. And that’s not factoring anything in terms of growth.

The big question is whether it’s likely to get back there. The company has been facing two big challenges recently.

Disintermediation

The first threat is disintermediation. This comes from Fair Isaac Corporation also known as FICO. 

US lenders use FICO scores to assess borrowers. FICO licenses its algorithm to Experian (and others) who apply this to their data to create a score.

That’s a very profitable business for Experian. FICO, however, is looking to license directly to lenders, bypassing the FTSE 100 firm in the process.

The US is a huge market for Experian, so the threat is one to take seriously. But the company has been hitting back.

Experian’s response

In response, Experian – along with Equifax and TransUnion – have come up with their own algorithm. It’s called Vantage.

If they can convince lenders to use this instead of FICO, the disintermediation threat collapses. That, however, won’t be entirely straightforward.

Vantage has been approved by the US regulators. But there’s still a question of whether lenders will actually use it. 

A lot comes down to what happens when lenders try to sell mortgages on. Whether they’ll achieve full value using Vantage instead of FICO remains to be seen.

Artificial intelligence

The other issue is artificial intelligence (AI). The concern here is that lenders might try to use AI products instead of Experian’s reports.

That won’t work for banks originating mortgages that they want to sell on. But that’s only one part of the business. 

Credit data is also used for things like credit cards and buy-now-pay-later loans. And those don’t face the same regulatory challenges.

The big question is whether demand for Experian’s reports will be as strong in these areas. I think that remains to be seen.

Data assets

Experian’s key asset is its data. This is virtually impossible for a new AI startup to replicate, so it’s hard to see competition on that front. 

The question, however, is how significant that will be. Lenders might think they can use AI to do more with less data. Whether or not they can remains to be seen. But the stock market seems to think there’s a real threat here. 

If that’s right, Experian could well find itself in a much weaker position when it comes to pricing. And that’s the problem for the business.

What should investors do?

There’s a chance that a decade-low multiple could be a huge buying opportunity. But investors need to be honest with themselves about the threats.

Exactly how all of this resolves I’m not sure. I do think, however, that there are much more obvious opportunities elsewhere at the moment.

Stephen Wright has no position in any of the companies mentioned.

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Investing in shares that pay dividends is a simple and popular way to aim for that extra cash without taking on a second job.

For Britons, one of the smartest ways to invest is with a Stocks and Shares ISA, because any gains earned here are free from income tax. Over time, that tax shield can make a noticeable difference, especially as income grows.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

So what does it take to generate £100 a week?

Maths time

A hundred quid a week is £5,200 a year. If an investor targets a dividend yield of 6%-7%, the maths is fairly straightforward:

• At 6%, it would require roughly £86,700 invested.
• At 7%, it’s closer to £74,300. 

Split the difference, and a realistic target sits at £75,000-£85,000. That may sound like a lot but it can be built over time.

The FTSE 100 has delivered annnualised total returns of about 9.5% over the past decade (with dividends reinvested). If that average holds, it would take about 10 years with an investment of £400 a month.

It might sound counterintuitive to spend money to make money, but once in place, it can pay itself off quickly. Plus, you end up with a solid pot of savings for retirement.

Which stocks?

Of course, stock selection matters. The London Stock Exchange is full of quality dividend stocks, but the biggest winners are often global businesses rather than UK-focused names.

Long-term outperformance tends to come from scalable models like data and software, or from well-timed exposure to cyclical sectors such as commodities and defence.

A good example is global information services company Experian (LSE: EXPN). This year’s been tough but between 2015 and 2025, it delivered a total return of over 310% — roughly 15% a year on average. That’s far ahead of the wider market.

Looking at its latest results, growth remains steady despite fears around AI risks. Revenue’s been rising in the high single digits, supported by strong demand for credit data and analytics, particularly in North America.

What’s the catch?

While Experian’s margins and cash generation are solid, it only pays a modest dividend with a yield of around 1%-2%. So after the 10-year growth period, an investor would need to pivot more into higher-yielding shares.

Valuation’s also a concern. The shares trade at a premium price-to-earnings ratio compared to the FTSE average. That reflects its quality, but it does leave less room for error.

If consumer lending activity slows or regulatory changes hit profits, the share price could take a hit.

So is it worth considering?

For long-term investors, Experian shows how combining steady growth with rising dividends can accelerate income over time.

With generally positive analyst sentiment, I think it’s worth considering. Many brokers rate the stock as a Buy or Hold, with forecasts pointing to continued earnings growth. 

It’s not the highest yielder but it demonstrates an important point: building a £100 weekly income isn’t just about chasing yield. Getting there requires a mix of income shares and high quality, growth-focused companies.

The post How much should someone invest to target a £100 weekly second income? appeared first on The Twelfth Magpie.

Analysts, however, expect the stock to bounce back strongly. So with the average price target 54% above the current level of the stock, is this a rare chance to buy? 

A FTSE 100 heavyweight

Experian is one of the FTSE 100’s most impressive businesses. It has a big competitive advantage that doesn’t take huge capital investments to maintain. 

The firm’s edge comes from the data it uses to produce its reports. This comes from a vast number of sources and includes a lot of information that isn’t publicly available.

On top of this, Experian’s credit scores have been a key asset for US lenders wanting to resell mortgages they originate. While this has evolved recently, it’s still largely the case.

That’s why the company’s shares have always traded at above-average multiples. But the stock market currently thinks the business might become an artificial intelligence (AI) casualty.

The AI disruption threat

AI won’t be able to match Experian’s product – it doesn’t have the data. But the concern is that it might be able to offer a close-enough alternative at a fraction of the price.

The FTSE 100 firm has an extremely strong position in the mortgage market, but that’s only one part of the business. The rest is things like payday loans and credit cards. 

In these cases, lenders might think an AI-driven background check that uses less data is good enough at a much lower price. And that’s the real threat for Experian to deal with.

This is why the stock has been falling. But the question for investors is whether it justifies a 34% fall from its highs, or whether investors are overreacting to a new and unusual threat.

How resilient is the business?

There hasn’t yet been any sign of disruption in Experian’s results. The latest update reported 8% organic revenue growth and it expects this to continue in the next few months.

Investors, though, need to think carefully about this. With the kind of threat the company is facing, things can change suddenly and without warning. 

That means the insights investors can get by looking at past results are very limited. This is always the case to some extent, but it’s especially true with Experian right now.

If AI competition starts to make progress in key markets, the situation could change very quickly. So investors need to look past the numbers to assess the firm’s resiliency.

Time to buy?

At its highs, a £10,000 investment in Experian bought 244 shares. With the stock now well below that level, investors can get 373 shares for the same amount of cash.

Analyst price targets suggest the stock is expected to bounce back strongly in the near future. But I think investors need to be a bit careful with this one.

While its core mortgage business is very well-protected, I can see some big potential threats elsewhere. And those need to be taken seriously.

I think the rise of AI is creating some unusually good investment opportunities. But Experian isn’t the stock I’m scrambling to buy right now to take advantage.

The post £10,000 buys 373 shares in this FTSE 100 heavyweight that’s tipped to surge in 2026 appeared first on The Twelfth Magpie.

Some high-quality blue-chip businesses have seen their share prices knocked down far more sharply than their underlying fundamentals. For investors with a long-term outlook, this could provide a chance to grab some undervalued shares before they rebound.

Experian

Despite strong fundamentals, Experian‘s (LSE: EXPN) share price has plunged about 40% over the past year. According to reports, the market fears that artificial intelligence (AI) might disrupt the company’s business model.

The question now is: will it find new ways to remain relevant in an increasingly AI-dominated world?

On paper, things still look good. Most notably, it boasts a stellar return on equity (ROE) of 27.6%, reflecting efficient profit generation from shareholder capital — well above industry averages.

The balance sheet and recent results are also impressive. Equity comfortably covers debt, revenue grew 5.8% year on year, and organic growth reached 8% in recent results. A majority of analysts give the stock a Strong Buy rating. Targets like 4,300p from UBS highlight optimism about its cloud migration and margin expansion.

Earnings per share (EPS) rose 15% even as the share price fell, reiterating the external impact of AI and potentially setting up a rebound if fears subside.

One key risk is sensitivity to interest rate shifts and lender caution. This could slow credit checks and fraud screenings (one of its main revenue drivers) if borrowing stays subdued longer than expected.

Considering Experian’s market-leading position, it seems unlikely that these temporary challenges are insurmountable. For patient investors, I think this price slump presents an opportunity worth exploring — and one I plan to capitalise on.

Sage Group

Shares in Sage (LSE:SGE) are down 39% in the past year, hitting new lows around 800p after analyst tweaks. But like Experian, its fundamentals remain solid. An exceptional ROE of 40% suggests excellent capital efficiency, with its net margin at a decent 14.68%.

Revenue climbed 7.76% year on year (averaging 6.9% historically), fueled by recurring SaaS subscriptions and cloud transitions in accounting software. Most analysts view it as a Strong Buy, with a board-approved buyback signaling potential undervaluation. It has a moderately low forward price-to-earnings (P/E) ratio of 15.9 and an acceptable P/E growth (PEG) ratio of 1.22.

Plus, EPS forecasts of 42p support dividend sustainability.

However, an increase in insider sales have raised eyebrows. Total insider ownership remains below 1%, so the impact is minimal, but the sentiment is concerning. But a more pressing risk is elevated debt — more than double equity. That could strain finances or lead to a default if earnings slip amid economic slowdowns or delayed cloud adoption.

To some degree, the company’s solid cash flow and strong ROE mitigate this risk. Plus, the share price decline appears overstated due to sector rotation away from growth tech. 

For risk-tolerant buyers eyeing long-term compounding, this could be an opportunity to grab some shares in a growing firm with loyal enterprise customers. The tech rally might be cooling off in the short-term, but Sage remains a compelling stock worth considering.

The post Thank goodness I avoided these 2 FTSE 100 stocks a year ago. Should I consider them today? appeared first on The Twelfth Magpie.

There are good reasons to be uncertain about AI winners and losers. But investors in general should consider adding some diversification to their portfolios, rather than just taking a side.

AI outcomes

I’m sceptical of anyone who claims to know with certainty what AI is going to mean for businesses over the long term. Moving share prices might present opportunities, but there’s inevitably risk.

One example that stands out to me is Experian (LSE:EXPN). The FTSE 100 company makes money by selling credit scores to lenders that helps them assess potential borrowers.

The risk is that AI might be able to allow banks to run their own assessments. That would significantly reduce their dependence on Experian and limit its ability to increase prices.

This, however, wouldn’t be entirely straightforward. Experian has a huge database that is virtually impossible for a newcomer to replicate and this should make its outputs more accurate and reliable.

The question, though, is whether lenders will care. For something like a mortgage, the risk is huge, but that’s only a small part of the business and the risk is much lower with payday loans or credit cards. 

With the stock down 36% in the last 12 months, I think it might be worth considering. But there’s a lot of uncertainty that investors need to be prepared to cope with going forward.

Away from AI

A bit further away from the cutting edge of AI, there are some interesting businesses in the FTSE 250. Two that stand out to me are Greggs and JD Wetherspoon. 

Importantly, both companies have strengths that give them unique advantages over competitors. If a business doesn’t have this, it’s hard to see it as a good long-term investment opportunity.

Both companies use their massive scale to generate cost advantages. And rather than using these to boost their own margins, they use them to keep prices down for customers.

That makes them a nightmare for competitors. It’s virtually impossible to make any money by selling sausage rolls for less than Greggs or pints for less than JD Wetherspoon. 

Could this be disrupted by AI? Maybe – if it results in significant job losses, consumers might have to pull back their spending and this could cause demand to fall. 

My sense, though, is that value choices are ones that people might find themselves trading down to. And I don’t think anything has an appeal that’s as durable as offering customers low prices.

What to invest in?

AI has been the stock market’s main theme recently – and with good reason. But investors don’t have to get involved in every emerging opportunity, especially when they’re hard to assess.

There are lots of quality businesses that are much more straightforward. And that simplicity doesn’t have to come at the expense of quality. 

So the question for investors is why not take a look at the likes of Greggs and JD Wetherspoon? Whatever happens with ChatGPT, my guess is they’re going to be around for a long time.

The post Not sure what to think about AI? Check out these FTSE 250 gems appeared first on The Twelfth Magpie.

Entain shares plunge

The first is gambling and sports betting group Entain (LSE: ENT). I ran the rule over it last June, after the board upgraded its revenue forecast for BetMGM, its 50:50 joint venture with MGM Resorts.

Broker UBS was enthusiastic. It argued that while Entain was steadily improving operationally, the shares were still trading at a 20% discount to rivals. UBS upgraded the stock to Buy and lifted its target price to 920p. Oops. Today, Entain trades at 600p. Over one year its shares are down 13.7%, and 60% over three.

I’m not a huge fan of betting shares and it didn’t help that Entain had to stump up £585m following a bribery probe linked to its former Turkish business in 2023. Tighter gambling rules in the UK and Netherlands have weighed on profits, while fears of higher UK taxes came true in November’s Budget. Remote gaming duty was almost doubled, from 21% to 40%. Entain estimates this will cost it £200m a year.

The shares still have plenty of fans. Nineteen analysts offering one-year forecasts produce an average target price of 1,013p. That’s almost 70% above today’s level.

After a tough year, Entain may be due a recovery. However, I suspect many of those forecasts pre-date the latest share price slide. With a price-to-earnings ratio of around 20, the shares are also more expensive than I expected. Entain could bring real excitement this year, and high-risk investors might consider a punt. But it still isn’t for me.

Experian plunges too

January’s other big loser was Experian (LSE: EXPN). As a credit bureau it operates in a more respectable line of work, but this stock turns out to be a gamble too.

Here, investors are worried about artificial intelligence. Experian owns vast amounts of consumer and business data, but will customers still pay if AI tools can provide similar answers?

On balance, I think they might. I’ve learned not to rely on ChatGPT for financial data. Even basic facts like stock P/E ratios or dividend yields can vary wildly depending on the source. It’s nowhere near ready to replace Experian’s proprietary data.

The board insists AI will actually work in its favour, by allowing it to enhance its services. Yet even after a $1bn share buyback gave the stock a lift on 30 January, it’s down 30% in a year.

Again, analysts appear optimistic about the year ahead, setting a one-year target price of 4,201p. That’s a blistering 52% above today’s 2,761p. As with Entain, many of these forecasts may predate the recent drop.

Despite its troubles, Experian has a P/E of 24. I think that’s a bit expensive for what may ultimately prove a binary bet on AI. I’ll look elsewhere for my next recovery play. I can see plenty of exciting opportunities on the FTSE 100, and with fewer risks. I’ll research them instead.

The post I dodged a bullet with these two crashing UK shares – should I buy them today? appeared first on The Twelfth Magpie.

According to City brokers, the following two FTSE 100 stocks could be joining in the fun by this time next year.

Software Armageddon fears

The most eye-popping City analyst target I saw recently was on London Stock Exchange Group (LSE:LSEG). On 27 January, Citigroup reiterated its Buy recommendation, with a 13,100p price target.

While that was slightly below the old target of 13,300p, it’s still a whopping 60% above the current price.

Shares of the group, which provides financial data and analytics, have slumped 32% in a year. Some investors fear AI agents will soon be able to pull and analyse the same data that the firm provides for a fraction of the cost, making the firm’s expensive physical terminal obsolete. This is a potential risk. 

In reality, however, the group has recently partnered with both Anthropic and OpenAI (ChatGPT) to sell its real-time data. So AI could be as much of an opportunity as it is a threat.

With the shares trading for 18 times forward earnings, and the company expected to keep growing its dividend by 10% per year, the stock is worth assessing more closely while it’s out of favour.

Another AI ‘loser’?

Next, we have another tech stock in the shape of credit bureau Experian (LSE:EXPN). It’s slumped 31% in the past 12 months, and is now up just 8% over five years.

This is surprising because Experian’s huge treasure trove of consumer and business data had underpinned strong business and share price for many years. So it’s very rare to now see the stock badly underperforming the FTSE 100.

Why is the market skittish here? Well, it’s almost certainly been dragged down by the AI-will-destroy-software trade. But Citigroup believes Experian will prove to be more of a beneficiary than a casualty of AI, and I agree with this (it has hard-to-replicate datasets).

However, the company behind the FICO score in the US has started selling its scoring services directly to mortgage lenders at lower prices. So there’s potential competitive challenges in its key North American market, and this has also been weighing on the stock. 

Even with these threats, the stock now looks too cheap to me. It’s trading at just 20 times forward earnings. Historically, Experian has always commanded an earnings multiple well north of 30, so this is a savage rerating.

If analysts rather than the market are right though, there could be a lot of value on offer here. The average target is now 4,195p — an incredible 52% above the share price!

In a show of confidence, Experian has just announced a mammoth new $1bn share buyback programme.

Foolish takeaway

Are these price targets realistic? I’m not sure they are because currently the market is avoiding most software/data stocks like the plague due to fears about AI disruption.

With the AI revolution just getting started, these fears could linger for some time, keeping pressure on high-quality tech stocks.

That said, there will be plenty of babies getting thrown out with the bathwater right now. And I think these FTSE 100 shares may well be two of them.

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