William Blair analyst Jeff Schmitt has maintained their bullish stance on LPLA stock, giving a Buy rating yesterday.
Jeff Schmitt has given his Buy rating due to a combination of factors, primarily focusing on LPL Financial’s strategic acquisition of Commonwealth Financial Network. This acquisition, valued at $2.7 billion, is set to significantly enhance LPL’s position in the wealth management sector by adding $285 billion in client assets and increasing its market share in the retail advisor-mediated market from 5.2% to 6.0%.
Furthermore, the acquisition is expected to generate meaningful revenue and expense synergies, with earnings per share accretion anticipated to be in the low single digits by the end of 2026. The deal is projected to contribute a 16% increase in client asset growth in 2025, complementing LPL’s organic growth estimate of 9%-10%. These factors, combined with LPL’s successful aggregation model, underpin Schmitt’s positive outlook and Buy rating for the stock.
In another report released yesterday, Citi also maintained a Buy rating on the stock with a $400.00 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.