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(Sharecast News) - Experian rallied on Friday after the credit-checking firm announced the launch of a $1bn share buyback programme.
"We continue to trade strongly underpinned by our strategic execution and we expect to end this financial year in a favourable leverage position," the company said. "This enables us to continue to invest in the business while also returning excess capital to shareholders.
"Given this flexibility, we see opportunity to drive additional shareholder value through the introduction of increased share repurchases."
Experian added that its medium-term financial framework, capital allocation framework and dividend policy are all unchanged.
At 1025 GMT, the shares were up 3.3% at 2,784.41p.
Aarin Chiekrie, equity analyst at Hargreaves Lansdown, said the buyback is "clearly in response to its roughly 20% share price decline year-to-date as the baby's seemingly been thrown out with the bathwater, on fears of increased competition".
He added: "Underlying trends at the business remain strong, so this looks like an opportunistic way to create value for current shareholders."
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