Update shared on10 Sep 2025
Fair value Increased 2.76%Analysts raised LPL Financial Holdings' price target to $453.42, citing strong Q2 earnings, sector tailwinds from interest rates and credit growth, but note tempered enthusiasm due to declining client cash balances and a more cautious rating from one analyst.
Analyst Commentary
- Bullish analysts raised price targets following Q2 earnings beats and updates to sector models, reflecting stronger-than-expected financial performance.
- Ongoing normalization of market volatility and trading volumes leads some to prefer brokers with robust rates and credit franchises, of which LPL is viewed favorably.
- Positive sentiment driven by the potential for inflation, higher interest rates, and tariffs to support rates and credit volumes, benefiting LPL’s business model.
- Slight concern over decreasing client cash balances, which slightly tempers otherwise strong earnings momentum.
- At least one bearish analyst downgraded the rating to Hold, citing a more cautious outlook despite relatively minor reduction in price target.
What's in the News
- BofA raised its price target for LPL Financial to $469 from $453, maintaining a Buy rating following Q2 report updates. (Periodicals)
- LPL Financial completed the onboarding of approximately $12 billion in broker and advisory assets from First Horizon Bank, with additional custodied assets expected in the coming months. (Key Developments)
- LPL Financial did not repurchase any shares in Q2 2025; cumulative buybacks since October 2014 total over 36.4 million shares, or 42.1% of shares outstanding, at a value of $3.28 billion. (Key Developments)
- LPL Financial was removed from the Russell 1000 Defensive Index as of June 28, 2025. (Key Developments)
- LPL Financial was also dropped from the Russell 1000 Growth-Defensive Index effective the same date. (Key Developments)
Valuation Changes
Summary of Valuation Changes for LPL Financial Holdings
- The Consensus Analyst Price Target has risen slightly from $441.25 to $453.42.
- The Consensus Revenue Growth forecasts for LPL Financial Holdings has significantly risen from 10.3% per annum to 18.7% per annum.
- The Net Profit Margin for LPL Financial Holdings has significantly fallen from 10.22% to 8.45%.
Disclaimer
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