STOCKS NEWS EUROPE-Experian slumps after H1 and BoAML cut

Shares in British credit data provider Experian (Other OTC: EXPGF - news) fall sharply on Wednesday, making the stock the worst performer on Britain's FTSE 100 and on the FTSEurofirst 300 index, after its interim results which prompt BoA Merrill Lynch to downgrade the stock.

On Wednesday, Experian reports that its first-half pre-tax profits have risen 2 percent from a year ago to $573 million - below the Thomson Reuters (Frankfurt: 864655 - news) StarMine 'mean' estimate for the profits which stood at $589 million. Experian (Frankfurt: A0KDZM - news) also announces the takeover of U.S. healthcare data firm Passport Health Communications for $850 million.

Experian shares are down by 7.1 percent at 1,175 pence in early session trading - underperforming a 0.3 percent rise on the FTSE 100, and pushing the stock down to its lowest level since early October.

Trading volumes in Experian come in at 40 percent of the stock's average 90-day volume - above those for the FTSE 100 where volumes stand at around 10 percent of the index's average 90-day amount.

Bank of America Merrill Lynch cuts its rating on Experian to 'neutral' from 'buy', mainly on valuation grounds, while adding that Experian's second quarter organic growth was weaker than expected.

"We are lowering our rating to 'Neutral', reflecting valuation and some disappointment on short term organic growth," it writes in a research note.

"Investors may also question the shift in capital allocation to more expensive M&A," it adds.

Despite Wednesday's slide in the stock price, Experian's shares remain up by around 20 percent since the start of 2013 - outperforming a 15 percent rise on the FTSE 100 over the same period.

Reuters messaging rm://sudip.kargupta.thomsonreuters.com@reuters.net