LPL Financial downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Michael Cyprys downgraded LPL Financial to Equal Weight from Overweight with a price target of $239, down from $281. The analyst also removed the shares from the firm’s "Financials Finest List." With peak rates and net interest margin "on the horizon," LPL shares could see a "multiple derating" as its forward earnings growth decelerates meaningfully, Cyprys tells investors in a research note. The analyst sees potential for a prolonged slowdown in organic asset growth if the markets remain volatile, which he says "poses a further risk." He stills like the company’s long-term growth prospects, but sees "less upside bias" to consensus estimates and says the stock’s valuation "seems more full."