Hargreaves Lansdown (HL.)

Sector:

Financials

Index:

FTSE 100

1,776.00p
   
  • Change Today:
      37.00p
  • 52 Week High: 2,433.00
  • 52 Week Low: 1,633.00
  • Currency: UK Pounds
  • Shares Issued: 474.32m
  • Volume: 763,956
  • Market Cap: £8,424m
  • RiskGrade: 169
  • Beta: 1.77

JP Morgan trims targets for some UK asset managers, 'underweight' Hargreaves Lansdown

By Alexander Bueso

Date: Wednesday 09 Oct 2019

LONDON (ShareCast) - (Sharecast News) - Analysts at JP Morgan trimmed their target prices for three of the UK's largest 'asset gatherers' to reflect "subdued" net flows over the third quarter.
The investment bank's analysts, who had a 'neutral' recommendation for Ashmore Group, Jupiter Fund Management and Schroders, marked down their targets from 485.0p, 390.0p and 3,000.0p to 450.0p, 360.0p and 2,950.0p, respectively.

With the exception of Amundi and DWS, their channel checks had revealed that the majority of firms in the space had seen net outflows over the three months to September.

Indeed, in both the States and Europe, the dominant note over the quarter were net inflows, helped by passive funds and active money market funds.

In the UK on the other hand, the mutual fund market saw its fifth quarter of outflows in a row.

"And we would be cautious on the near-term UK flow outlook as political uncertainty persists," they said.

"Flow momentum in the UK has been particularly subdued relative to Europe, reflecting ongoing political uncertainty, and may continue to weigh on sentiment surrounding the UK-listed asset managers."

Excluding Hargreaves Lansdown and Swiss-listed Partners Group, shares of the various asset gatherers were trading on an average price-to-earnings multiple of about 12.5 reflecting the weaker near-term outlook for flows and further fee pressure.

However, HL was kept at 'underweight' as the weak market backdrop in the UK and investor sentiment were unlikely to generate earnings upgrades short-term, while over the medium-term, competitive pressure might weigh on revenue margins.

Standard Life Aberdeen was kept at 'overweight' on the back of its "attractive valuation" and potential for capital returns - although net flows were seen remaining subdued over the remainder of 2019 as was Intermediate Capital Group, with the target price on the latter's shares marked up from 1,530.0p to 1,635.0p.

DWS was upgraded to 'overweight'.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

HL. Market Data

Currency UK Pounds
Share Price 1,776.00p
Change Today 37.00p
% Change 2.13 %
52 Week High 2,433.00
52 Week Low 1,633.00
Volume 763,956
Shares Issued 474.32m
Market Cap £8,424m
Beta 1.77
RiskGrade 169

HL. Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
97.02% below the market average97.02% below the market average97.02% below the market average97.02% below the market average97.02% below the market average
98.53% below the sector average98.53% below the sector average98.53% below the sector average98.53% below the sector average98.53% below the sector average
Price Trend
17.87% below the market average17.87% below the market average17.87% below the market average17.87% below the market average17.87% below the market average
5.48% below the sector average5.48% below the sector average5.48% below the sector average5.48% below the sector average5.48% below the sector average
Income
46.32% below the market average46.32% below the market average46.32% below the market average46.32% below the market average46.32% below the market average
77.78% below the sector average77.78% below the sector average77.78% below the sector average77.78% below the sector average77.78% below the sector average
Growth
14.73% below the market average14.73% below the market average14.73% below the market average14.73% below the market average14.73% below the market average
43.8% below the sector average43.8% below the sector average43.8% below the sector average43.8% below the sector average43.8% below the sector average

What The Brokers Say

Strong Buy 2
Buy 2
Neutral 2
Sell 1
Strong Sell 7
Total 14
sell
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

HL. Dividends

  Latest Previous
  Final Special
Ex-Div 26-Sep-19 26-Sep-19
Paid 18-Oct-19 18-Oct-19
Amount 23.40p 8.30p

Trades for 18-Nov-2019

Time Volume / Share Price
16:35 184,991 @ 1,776.00p
16:29 59 @ 1,769.00p
16:29 165 @ 1,769.00p
16:29 24 @ 1,768.50p
16:29 114 @ 1,768.50p

HL. Key Personnel

CEO Christopher Hill
CFO Philip Johnson

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