Hargreaves Lansdown (HL.)

Sector:

Financials

Index:

FTSE 100

972.00p
   
  • Change Today:
    -11.00p
  • 52 Week High: 1,598.00
  • 52 Week Low: 762.60
  • Currency: UK Pounds
  • Shares Issued: 474.32m
  • Volume: 722,579
  • Market Cap: £4,610.38m
  • RiskGrade: 176

Credit Suisse lowers target for Hargreaves Lansdown, stays at 'underperform'

By Alexander Bueso

Date: Tuesday 10 Aug 2021

LONDON (ShareCast) - (Sharecast News) - Analysts at Credit Suisse trimmed their target price for shares of Hargreaves Lansdown following the investment platform's latest full-year numbers.
The target price was marked down from 1,520.0p to 1,430.0p with the recommendation on the shares unchanged at 'underperform'.

In their opinion, specific headwinds such lower margins on funds and in share dealing, as well as higher costs offset the general tailwinds for the industry.

"We believe ambitious targets on hard-to-forecast share dealing revenues, along with uncertainty on costs and ferocious competition, shrink Hargreaves' margin for error," they said.

In the last quarter of the 2019 financial year, Hargreaves registered £900m of net flows excluding books purchases.

Fast-forward two years later and despite £52.0m of marketing and distribution spend, and 420,000 more clients, it recorded the same net flow.

It was a similar story for share dealing with Hargreaves' margin targets implying 790-990,000 deals each month.

Credit Suisse had penciled-in around 700,000 per month but said that was "generous" given the normalisation already evident in retail trading.

All told, the analysts trimmed their revenue forecasts for 2021-23 by 1.0-2.0% on lower expected margins on funds and modestly increased their operating cost estimates by 1.0-3.0% for over the same period.

In parallel, marketing costs were expected to continue to increase by double digits, alongside staff costs, although dealing costs were also seen normalising as international volumes reduced.

"Despite the limited downside implied by our TP, we continue to see a risk of further de-rating, with catalysts being weak share dealing, low Net New Business, and higher costs.

"In our view, Hargreaves' pricing structure remains unsustainable, and underpins its fragility."

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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 972.00p
Change Today -11.00p
% Change -1.12 %
52 Week High 1,598.00
52 Week Low 762.60
Volume 722,579
Shares Issued 474.32m
Market Cap £4,610.38m
RiskGrade 176

HL. Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
73.75% below the market average73.75% below the market average73.75% below the market average73.75% below the market average73.75% below the market average
80.95% below the sector average80.95% below the sector average80.95% below the sector average80.95% below the sector average80.95% below the sector average
Price Trend
69.94% below the market average69.94% below the market average69.94% below the market average69.94% below the market average69.94% below the market average
70.15% below the sector average70.15% below the sector average70.15% below the sector average70.15% below the sector average70.15% below the sector average
Income
32.10% above the market average32.10% above the market average32.10% above the market average32.10% above the market average32.10% above the market average
45.45% below the sector average45.45% below the sector average45.45% below the sector average45.45% below the sector average45.45% below the sector average
Growth
98.96% above the market average98.96% above the market average98.96% above the market average98.96% above the market average98.96% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average

What The Brokers Say

Strong Buy 8
Buy 1
Neutral 6
Sell 0
Strong Sell 5
Total 20
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 16-Aug-2022

Time Volume / Share Price
16:54 1,583 @ 969.99p
16:35 246,248 @ 972.00p
16:29 74 @ 973.60p
16:29 38 @ 973.60p
16:29 38 @ 973.40p

HL. Key Personnel

CEO Christopher Hill
CFO Amy Stirling

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