Hargreaves Lansdown (HL.)

Sector:

Financials

Index:

FTSE 100

863.60p
   
  • Change Today:
      0.20p
  • 52 Week High: 1,457.50p
  • 52 Week Low: 740.80p
  • Currency: UK Pounds
  • Shares Issued: 474.32m
  • Volume: 762,262
  • Market Cap: £4,096.22m
  • RiskGrade: 176

Credit Suisse starts Hargreaves Lansdown at 'underperform'

By Michele Maatouk

Date: Tuesday 01 Oct 2019

LONDON (ShareCast) - (Sharecast News) - Hargreaves Lansdown was under pressure on Tuesday after Credit Suisse initiated coverage of the stock at 'underperform' with a 1,740p price target as it launched coverage of the European diversified financials sector.
The bank said its 2020-22 earnings per share forecast for HL are 6-13% below consensus expectations and it reckons the stock's premium valuation is difficult to support in the face of near-term headwinds.

CS said "momentum looks challenging" as HL missed its performance targets for fund flows, new clients and profit before tax in FY19. The bank estimated that underlying net fund flows slowed from £6.9bn in FY17 to £6.6bn in FY18 and £6.1bn in FY19.

"We think momentum is starting to look challenging for this 40% market share, 65% EBITDA margin, retail-facing business," it said.

"We see continued headwinds from the impact of the gating of the LF Woodford Equity Income fund (held in some HL Funds)," it added.

CS noted that HL trades at a premium to peers, reflecting its ability to gather assets under administration and grow earnings, even in difficult conditions. However, it said the valuation is vulnerable "given flow and margins, as well as potential reputation risks for this retail investor-facing company and the risk of consensus earnings downgrades".

In the same note, CS initiated coverage of Ashmore at 'underperform' with a 410p price target, while Standard Life and Schroders were started at 'neutral' with 270p and 3,250p price targets, respectively.

Jupiter Fund Management was initiated at 'underperform' with a 320p price target and London Stock Exchange was started at 'outperform' with a 8,340p target.

At 1415 BST, HL shares were down 2.9% at 2,019p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

HL. Market Data

Currency UK Pounds
Share Price 863.60p
Change Today 0.20p
% Change 0.02 %
52 Week High 1,457.50p
52 Week Low 740.80p
Volume 762,262
Shares Issued 474.32m
Market Cap £4,096.22m
RiskGrade 176

HL. Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
36.88% below the market average36.88% below the market average36.88% below the market average36.88% below the market average36.88% below the market average
64.52% below the sector average64.52% below the sector average64.52% below the sector average64.52% below the sector average64.52% below the sector average
Price Trend
28.37% below the market average28.37% below the market average28.37% below the market average28.37% below the market average28.37% below the market average
22.73% below the sector average22.73% below the sector average22.73% below the sector average22.73% below the sector average22.73% below the sector average
Income
34.80% above the market average34.80% above the market average34.80% above the market average34.80% above the market average34.80% above the market average
41.03% below the sector average41.03% below the sector average41.03% below the sector average41.03% below the sector average41.03% below the sector average
Growth
96.98% above the market average96.98% above the market average96.98% above the market average96.98% above the market average96.98% above the market average
96.67% above the sector average96.67% above the sector average96.67% above the sector average96.67% above the sector average96.67% above the sector average

What The Brokers Say

Strong Buy 7
Buy 1
Neutral 10
Sell 0
Strong Sell 3
Total 21
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

HL. Dividends

  Latest Previous
  Final Interim
Ex-Div 22-Sep-22 03-Mar-22
Paid 24-Oct-22 01-Apr-22
Amount 27.44p 12.26p

Trades for 25-Nov-2022

Time Volume / Share Price
17:01 4,150 @ 852.09p
17:01 4,150 @ 852.26p
16:59 5,140 @ 855.89p
16:45 181 @ 859.00p
16:45 181 @ 859.00p

HL. Key Personnel

CEO Christopher Hill
CFO Amy Stirling

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