Wells Fargo analyst Michael Brown has maintained their bullish stance on LPLA stock, giving a Buy rating on June 9.
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Michael Brown’s rating is based on a combination of factors that suggest potential for LPL Financial despite recent challenges. The May update showed a decrease in client cash to a record low, which was somewhat anticipated due to market volatility and active buying. Although the drop in cash was larger than expected, it aligns with strong market conditions and demand for buying, indicating that the fundamentals remain solid.
Furthermore, while organic growth appeared soft with net new assets showing mid-single-digit growth, the core growth rate was still respectable. The planned separation of large OSJs has been gradual, and although LPL is currently tracking below consensus expectations, there is potential for improvement. The high level of net buying also demonstrates investor confidence, suggesting that LPL Financial’s stock may have room to grow, justifying the Buy rating.
In another report released on June 9, Redburn Atlantic also upgraded the stock to a Buy with a $460.00 price target.
LPLA’s price has also changed moderately for the past six months – from $329.010 to $374.360, which is a 13.78% increase.