LPL Financial’s Strategic Growth and Robust Performance Drive Strong Analyst Rating

William Blair analyst Jeff Schmitt has maintained their bullish stance on LPLA stock, giving a Buy rating today.

Jeff Schmitt’s rating is based on LPL Financial’s impressive financial performance and strategic growth initiatives. The company reported an adjusted EPS of $5.15 for the first quarter, surpassing both consensus and internal estimates. This strong performance is attributed to LPL’s effective aggregation model, which has significantly boosted client asset growth by 25%, driven by robust recruiting, strategic partnerships, and successful mergers and acquisitions.
Furthermore, LPL Financial is experiencing a positive shift in spread income, even amidst declining interest rates, which is expected to persist. The anticipated onboarding of Commonwealth and First Horizon is likely to sustain this growth momentum into the latter half of the year. With projections indicating nearly 30% client asset growth by 2025, LPL Financial is poised for continued EPS growth in the mid-teens, despite challenging economic conditions. Schmitt believes that the company’s aggregation model will continue to support double-digit EPS growth over the long term.

In another report released today, Barclays also maintained a Buy rating on the stock with a $365.00 price target.

Based on the recent corporate insider activity of 68 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of LPLA in relation to earlier this year.