Proactive Investors - Run By Investors For Investors

Hargreaves Lansdown weak as Morgan Stanley cut its rating to ‘underweight’ from ‘equal-weight’, reduces target

Morgan Stanley’s analysts noted that a weaker UK economic outlook is likely to hit flow for Hargreaves Lansdown in 2019, together with weaker stockbroking fees
Share faller
They said: "We see several new headwinds on the horizon which could derail the long-term growth story and trigger share price underperformance”

Hargreaves Lansdown PLC (LON:HL.) was a big blue chip faller on Wednesday after Morgan Stanley cut its rating for the investment platform group to ‘underweight’ from ‘equal-weight’.

The US investment bank raised its target price for the FTSE 100-listed firm to 1,870p from 1,755p, albeit with the shares currently trading at 1.913p each, down 3.3% on Tuesday’s close.

READ: Hargreaves Lansdown Q1 net revenue rises 16% in "uncertain market environment"

In a note to clients, Morgan Stanley’s analysts noted that a weaker UK economic outlook is likely to hit flow for Hargreaves Lansdown in 2019, together with weaker stockbroking fees.

They said: "We see several new headwinds on the horizon which could derail the long-term growth story and trigger share price underperformance.”

Back in October, Hargreaves Lansdown reported a 3% rise in first-quarter assets under administration (AuA) over the previous quarter while also highlighting market uncertainty during the period.

The firm’s AuA rose to £94.1bln in the three months to September 30 from the three months ended June 30. AuA stood at £82bln in the year-ago period.

Chris Hill, Hargeaves Lansdown’s chief executive, said: “The past quarter has seen an uncertain market environment and weak investor sentiment resulting in an industry-wide slowdown in net retail flows.”

He added: “Despite this backdrop, we believe the strength of our business model positions us well for when sentiment improves."

 

View full HL. profile View Profile

Hargreaves Lansdown Timeline

Related Articles

Car
September 25 2018
Advantage Finance motor division continues to receive more than 80,000 applications for loans a month and customer numbers now stand at a record 58,000
PCF
Wed
“I think we’re a different generation of bank that is a lot quicker on our feet, a lot quicker at reacting to what customers want and are a lot more attractive to the savings market,” PCF boss Scott Maybury said

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use