Peel Hunt upgrades Hargreaves Lansdown to 'buy'
Peel Hunt upgraded its stance on Hargreaves Lansdown on Thursday to ‘buy’ from ‘add’ as it said the shares have oversold due to lower interest income expectations and that it should continue to benefit from a boost to the stockbroking business.
The broker said there is potential upside to revenue and profits if trading volumes remain elevated, with little sign so far of a sustained slowdown.
It also noted a slight increase in the weighting towards younger clients who may have smaller portfolio sizes but offer higher lifetime values.
Peel Hunt lifted its price target on the stock to 1,810p from 1,700p.
At 1050 BST, HL shares were up 3.9% at 1,401.50p.