Woodford fallout now priced into Hargreaves Lansdown shares, says Deutsche Bank
By Michele Maatouk
Date: Wednesday 26 Jun 2019
(Sharecast News) - The fallout from the suspension of the Woodford Equity Income Fund is now reflected in the Hargreaves Lansdown share price, Deutsche Bank said on Wednesday, as it upped its stance on the stock to 'hold' from 'sell'.
Deutsche said the last month has been overshadowed by the suspension of the Woodford fund - held in six of Hargreaves' portfolios - which has seen HL shares drop 15% since 3 June.
It said that while the suspension is "clearly a negative for Hargreaves in terms of reputation", the fallout from Woodford "is now well reflected in the recent share price decline".
Although the shares are still modestly above its unchanged 1,775p target price, they now trade slightly below their long-term average price-to-earnings, DB said. "As such, we lift our recommendation."
At 1040 BST, the shares were up 0.2% at 1,917.50p.
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