Hargreaves Lansdown (HL.)

Sector:

Financials

Index:

FTSE 100

961.40p
   
  • Change Today:
      12.00p
  • 52 Week High: 1,598.00
  • 52 Week Low: 762.60
  • Currency: UK Pounds
  • Shares Issued: 474.32m
  • Volume: 455,876
  • Market Cap: £4,560.10m
  • RiskGrade: 176

BofA Merrill Lynch ups Hargreaves Lansdown to 'buy'

By Michele Maatouk

Date: Monday 24 Jan 2022

LONDON (ShareCast) - (Sharecast News) - Bank of America Merrill Lynch upgraded Hargreaves Lansdown to 'buy' for the first time on Monday as it said the company's gearing to rate rises and potential benefits from increased engagement in share trading are underappreciated.
The bank, which lifted its recommendation from 'neutral', said its forecasts sit 5- 21% above consensus, largely due to its reflection of Bank of England base rates increasing to 75 basis points by year-end.

BoA said its strategists forecast BOE base rates increasing from their current level of 25bps to 50bps on 3 February and 75bps in November. "This has led to a 17% boost in our EPS forecasts by FY24E, as cash margins increase from 19bps in FY22E to 72bps in FY24E.

"We do not allow for any further hikes beyond 2022 and believe much of the benefit of further hikes would be passed to customers. Higher bank account rates could, in time, also make Active Savings profitable."

The bank upped its price target on HL shares to 1,625p from 1,475p to reflect the benefit of rate increases and implying around 30% total return potential.

BoA said also share trading frequency trends are not appreciated. "Share trading frequency spiked during Covid, particularly during lockdowns," it noted.

"These levels will likely not repeat, but share trading frequency was already on an increasing trend, which we think is underappreciated.

"Increased international (particularly US) share trading is also more profitable and should continue, in our view. Charges remain high relative to peers, but we believe HL's ease of use is underappreciated. We think share trading revenues could positively surprise."

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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 961.40p
Change Today 12.00p
% Change 1.26 %
52 Week High 1,598.00
52 Week Low 762.60
Volume 455,876
Shares Issued 474.32m
Market Cap £4,560.10m
RiskGrade 176

HL. Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
68.9% below the market average68.9% below the market average68.9% below the market average68.9% below the market average68.9% below the market average
79.37% below the sector average79.37% below the sector average79.37% below the sector average79.37% below the sector average79.37% below the sector average
Price Trend
73.52% below the market average73.52% below the market average73.52% below the market average73.52% below the market average73.52% below the market average
83.58% below the sector average83.58% below the sector average83.58% below the sector average83.58% below the sector average83.58% below the sector average
Income
37.33% above the market average37.33% above the market average37.33% above the market average37.33% above the market average37.33% 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
99.61% above the market average99.61% above the market average99.61% above the market average99.61% above the market average99.61% 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 09-Aug-2022

Time Volume / Share Price
12:26 430 @ 961.40p
12:26 261 @ 961.40p
12:26 128 @ 961.00p
12:25 172 @ 961.40p
12:25 265 @ 961.60p

HL. Key Personnel

CEO Christopher Hill
CFO Amy Stirling

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