LPL Financial upgraded to Buy from Neutral at BofA

BofA upgraded LPL Financial to Buy from Neutral with a $268 price target. The firm now has greater transparency into cash sweep risks post calls and channel checks, notes the analyst, who cites a significant decline in valuation and deterioration in sentiment for the upgrade. LPL offers an attractive EPS algorithm that generates mid-teens revenue growth and with operating leverage and capital management the firm estimates LPL can generate annualized EPS growth of 20% or even higher in active deployment, bull market or rising interest rate years, the analyst tells investors.