RBC Capital downgrades Hargreaves Lansdown to ‘sector perform’
RBC Capital Markets downgraded Hargreaves Lansdown on Thursday to ‘sector perform’ from ‘outperform’ and slashed the price target to 1,050p from 1,650p, as it said near-term uncertainty "thwarts underlying value".
RBC said HL is a quality business with a customer base, brand and return profile that is under-appreciated by the market.
"However, with the business facing a period of elevated uncertainty on a number of fronts, including the possibility of a further slow-down in flows amid the changing macro environment, we consider the shares to be lacking catalysts in the near term and downgrade to sector perform," it said.
At 1055 GMT, the shares were down 4.3% at 834p.