William Blair analyst Jeff Schmitt has maintained their bullish stance on LPLA stock, giving a Buy rating today.
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Jeff Schmitt has given his Buy rating due to a combination of factors including LPL Financial’s impressive financial performance and strategic initiatives. The company has consistently exceeded expectations, with a notable adjusted EPS of $5.20 against a consensus of $4.49. This performance is supported by a 45% growth in client assets, driven by recent acquisitions, strong market performance, and organic growth.
Additionally, Schmitt highlights the significant role of the Commonwealth deal, which has been pivotal in boosting momentum across LPL Financial. Despite some short-term challenges in organic growth due to resource reallocation, the integration of Commonwealth is expected to enhance performance as macroeconomic conditions stabilize. Furthermore, LPL Financial is projected to maintain a robust EPS growth rate of around 20% through 2027, aided by rising spread income, improved expense management, and synergies from the Commonwealth acquisition. The stock’s current valuation, trading at a relatively low multiple of future EPS estimates, presents an attractive investment opportunity.
In another report released today, Morgan Stanley also reiterated a Buy rating on the stock with a $462.00 price target.