Hargreaves Lansdown (HL.)

Sector:

Financials

Index:

FTSE 100

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

JP Morgan trims targets for some UK asset managers, 'underweight' Hargreaves Lansdown

By Alexander Bueso

Date: Wednesday 09 Oct 2019

LONDON (ShareCast) - (Sharecast News) - Analysts at JP Morgan trimmed their target prices for three of the UK's largest 'asset gatherers' to reflect "subdued" net flows over the third quarter.
The investment bank's analysts, who had a 'neutral' recommendation for Ashmore Group, Jupiter Fund Management and Schroders, marked down their targets from 485.0p, 390.0p and 3,000.0p to 450.0p, 360.0p and 2,950.0p, respectively.

With the exception of Amundi and DWS, their channel checks had revealed that the majority of firms in the space had seen net outflows over the three months to September.

Indeed, in both the States and Europe, the dominant note over the quarter were net inflows, helped by passive funds and active money market funds.

In the UK on the other hand, the mutual fund market saw its fifth quarter of outflows in a row.

"And we would be cautious on the near-term UK flow outlook as political uncertainty persists," they said.

"Flow momentum in the UK has been particularly subdued relative to Europe, reflecting ongoing political uncertainty, and may continue to weigh on sentiment surrounding the UK-listed asset managers."

Excluding Hargreaves Lansdown and Swiss-listed Partners Group, shares of the various asset gatherers were trading on an average price-to-earnings multiple of about 12.5 reflecting the weaker near-term outlook for flows and further fee pressure.

However, HL was kept at 'underweight' as the weak market backdrop in the UK and investor sentiment were unlikely to generate earnings upgrades short-term, while over the medium-term, competitive pressure might weigh on revenue margins.

Standard Life Aberdeen was kept at 'overweight' on the back of its "attractive valuation" and potential for capital returns - although net flows were seen remaining subdued over the remainder of 2019 as was Intermediate Capital Group, with the target price on the latter's shares marked up from 1,530.0p to 1,635.0p.

DWS was upgraded to 'overweight'.

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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 1,457.50
52 Week Low 740.80
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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