Hargreaves Lansdown (HL.)

Sector:

Financials

Index:

FTSE 250

736.00p
   
  • Change Today:
    -2.00p
  • 52 Week High: 927.00p
  • 52 Week Low: 690.40p
  • Currency: UK Pounds
  • Shares Issued: 474.32m
  • Volume: 730,810
  • Market Cap: £3,490.99m
  • RiskGrade: 176

Berenberg lowers target price on Hargreaves Lansdown

By Iain Gilbert

Date: Friday 17 Jun 2022

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg lowered their target price on financial services company Hargreaves Lansdown from 1,250.0p to 925.0p on Friday, stating there were "few tailwinds to fight near-term headwinds".

Berenberg said Hargreaves Lansdown has faced 10% consensus revenue downgrades year-to-date, excluding cash revenue, and has derated by 30% to a 16.0x full-year 2023 price-to-earnings ratio.

The German bank, which also reiterated its 'hold' rating on the stock, highlighted that this represents a 40% discount to long-run average multiples.

However, Berenberg also believes there to be "limited near-term catalysts" that could materially reverse this performance, partly due to the uncertain macroeconomic and consumer confidence outlook, and the benefits of HL's back-end-loaded cost programme.

"HL earns revenue on client cash. In FY 2020 this equated to a 74bp margin and 17% of revenues. Cash margins are expected to trough in FY 2022 at 30-35bp. As Blomberg consensus expects UK rates to increase to c200bp by end-2023, total revenue should be supported by higher cash revenue, thus partly offsetting lower performance and lower activity headwinds. Consensus expects a 29bp FY 2022 cash margin, rising to 85bp in FY 2024. This implies c50-60% deposit betas," said the analysts.

"We cut our EPS by up to 20% due to lower activity and performance. We believe that, during periods of uncertainty, flows that are more tax-wrapped and less discretionary are likely to be less volatile than those that are not. As such, we prefer St. James's Place to HL."



Reporting by Iain Gilbert at Sharecast.com

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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 736.00p
Change Today -2.00p
% Change -0.27 %
52 Week High 927.00p
52 Week Low 690.40p
Volume 730,810
Shares Issued 474.32m
Market Cap £3,490.99m
RiskGrade 176

HL. Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
19.63% below the market average19.63% below the market average19.63% below the market average19.63% below the market average19.63% below the market average
69.52% below the sector average69.52% below the sector average69.52% below the sector average69.52% below the sector average69.52% below the sector average
Price Trend
27.77% below the market average27.77% below the market average27.77% below the market average27.77% below the market average27.77% below the market average
10.34% below the sector average10.34% below the sector average10.34% below the sector average10.34% below the sector average10.34% below the sector average
Income
83.59% above the market average83.59% above the market average83.59% above the market average83.59% above the market average83.59% above the market average
72.73% above the sector average72.73% above the sector average72.73% above the sector average72.73% above the sector average72.73% above the sector average
Growth
7.80% above the market average7.80% above the market average7.80% above the market average7.80% above the market average7.80% above the market average
23.36% above the sector average23.36% above the sector average23.36% above the sector average23.36% above the sector average23.36% above the sector average

What The Brokers Say

Strong Buy 4
Buy 3
Neutral 3
Sell 5
Strong Sell 2
Total 17
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
  Interim Final
Ex-Div 29-Feb-24 16-Nov-23
Paid 28-Mar-24 15-Dec-23
Amount 13.20p 28.80p

Trades for 28-Mar-2024

Time Volume / Share Price
16:57 5,454 @ 735.90p
16:35 476,063 @ 736.00p
16:35 2,205 @ 736.00p
16:35 2,375 @ 736.00p
16:35 1,527 @ 736.00p

HL. Key Personnel

CEO Dan Olley
CFO Amy Stirling
Chair Alison Platt

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