Will LPL Financial (LPLA) Leverage First Horizon Assets to Strengthen Its Institutional Growth Narrative?

• First Horizon Bank announced it has transitioned support for its broker-dealer and investment advisory services program, First Horizon Advisors Inc., to LPL Financial Holdings’ institution services platform, resulting in approximately US$12 billion of client assets onboarding to LPL as of August 2025.
• This collaboration significantly expands LPL’s managed assets base, highlighting continued momentum in winning institutional relationships and increasing its scale in the wealth management sector.
• We'll examine how onboarding US$12 billion of client assets from First Horizon Bank could influence LPL's long-term investment narrative.

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LPL Financial Holdings Investment Narrative Recap

To be a shareholder in LPL Financial Holdings, you need to believe in the company’s ability to scale its platform and retain advisors in a sector facing rising demand for wealth management services. The onboarding of approximately US$12 billion in client assets from First Horizon Bank may help reinforce LPL’s core value proposition in institutional relationships, but it is unlikely to materially alter near-term earnings catalysts or mitigate the ongoing risk from margin pressure due to interest rate normalization and fee compression.

Among recent announcements, LPL’s completion of the Commonwealth Financial Network acquisition earlier this August is especially relevant. This move, alongside the First Horizon Bank client asset onboarding, emphasizes LPL’s growth-through-scale model and underscores its focus on both expanding managed assets and boosting advisor retention, two areas closely tied to future margin and earnings growth.

Yet, while asset growth stands out, investors should also pay close attention to longer-term risks such as...

Read the full narrative on LPL Financial Holdings (it's free!)

LPL Financial Holdings' narrative projects $18.5 billion in revenue and $1.9 billion in earnings by 2028. This requires 10.3% yearly revenue growth and a $0.8 billion earnings increase from $1.1 billion currently.

Uncover how LPL Financial Holdings' forecasts yield a $441.25 fair value, a 33% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members shared three fair value estimates for LPL, ranging from US$441.25 to US$483.69 per share. With fee compression still putting pressure on profitability, evaluating multiple viewpoints becomes even more important for understanding LPL’s future potential.

Explore 3 other fair value estimates on LPL Financial Holdings - why the stock might be worth just $441.25!

Build Your Own LPL Financial Holdings Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your LPL Financial Holdings research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free LPL Financial Holdings research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate LPL Financial Holdings' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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