Peel Hunt argues that Hargreaves Lansdown (LON:HL) can continue delivering growth despite difficult market conditions, Citywire reports. The comments came after the blue-chip services group updated investors on its recent performance yesterday, noting that it had “seen an uncertain market environment and weak investor sentiment resulting in an industry-wide slowdown in net retail flows”.
Hargreaves Lansdown’s share price plunged following the announcement yesterday, giving up 5.01 percent to close at 1,850.50p. The shares underperformed the broader UK market, even as the FTSE 100 index suffered another hefty selloff, shedding 138.81 points to end the session 1.94 percent lower at 7,006.93.
Peel Hunt weighs in on HL
Peel Hunt reaffirmed Hargreaves Lansdown as a ‘hold’ yesterday, with a price target of 1,760p on the shares. The move came after the FTSE 100 group said that its assets under administration had climbed £94.1 billion as at September 30, up three percent since June 30, while cautioning on the market environment.
“While more volatile market conditions are a challenge, the reality is that Hargreaves Lansdown can continue to deliver long-term growth,” the broker’s analyst Stuart Duncan said, as quoted by Citywire, adding that the group remained “a unique asset, with a dominant position in the direct-to-consumer market, the ability to deliver inflows regardless of market conditions and the consistent delivery of high returns”.
The analyst, however, cautioned that given current equity market conditions the broker “would expect the shares to weaken like others in the sector”.
Other analysts on FTSE 100 group
Shore Capital also reaffirmed Hargreaves Lansdown as a ‘hold’ yesterday, without specifying a price target on the shares. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average price target of 1,758.30p.