LPL Financial reinstated with a Buy at Goldman Sachs

Goldman Sachs analyst Alexander Blostein reinstated coverage of LPL Financial (LPLA) with a Buy rating and $405 price target which represents 18% upside. The firm believes near-term earnings dilution from the Commonwealth Financial Network acquisition deal, LPL’s recently slower new assets growth, and earnings headwinds from lower interest rates are now “heavily discounted” in the shares. The stock’s multiple can re-rate back to historical levels with updates around the Commonwealth integration and improvement in assets growth as industry advisor churn normalizes, the analyst tells investors in a research note.