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

Berenberg says Q1 is 'make or break' for Hargreaves Lansdown

By Sean Farrell

Date: Friday 07 Feb 2020

LONDON (ShareCast) - (Sharecast News) - The first quarter of 2020 is "make or break" for Hargreaves Lansdown as investors examine whether weak inflows are the result of temporary factors or increased competition, Berenberg said as the broker cut its price target on the company's shares.


Keeping their 'hold' rating on the stock the Berenberg analysts said it was hard to separate cyclical and structural forces when judging reduced net inflows in the first half of Hargreaves Lansdown's year. They cut their price target for Hargreaves Lansdown shares to 1,820.0p from 1,928.0p.

Investment Association figures show Hargreaves Lansdown accounted for 20.0% of UK platform flows in the second half of 2019, down from 50.0% in 2018. However, overall platform flows fell 30.0% in 2019 and mix effects explain much of the change, the analysts surmised.

Hargreaves Lansdown's management has said customer activity picked up after December's election and that flows have improved in recent weeks. On 31 January, the company reported profit up in the first half but a 9.0% reduction in net new business to ?2.3bn.

The analysts, led by Chris Turner, said Hargreaves Lansdown appeared to have had a 20% increase in web searches since the election. Based on that improvement and the approach of ISA season, Berenberg assumed underlying flows of ?3.8bn in the second half of 2020, rising to ?4.5bn including savings product flows.

"We believe the swing from a weak cyclical environment in Q4 to a stronger environment in Q1 will be important in helping investors calibrate the extent to which lacklustre flows have been a symptom of cyclical factors, rather than structural pressures (that is, competition)," the analysts said. "For this reason, we think Q1 is a make-or-break quarter for Hargreaves Lansdown."

Hargreaves Lansdown's reputation took a knock in 2019 when Neil Woodford's investment business collapsed. Hargreaves Lansdown had recommended Woodford's equity income fund until it was frozen, leaving almost 300,000 of its customers with money tied up.

On Friday, Peter Hargreaves, the company's billionaire cofounder, sold ?550.0m of his shares. Hargreaves said the sale was part of a long-term plan to diversify his assets.







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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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