Deutsche Bank argues that the fallout from the suspension of the Woodford Equity Income Fund is now reflected in the Hargreaves Lansdown share price (LON:HL), Sharecast reports. The comments came as the analysts lifted their rating on the blue-chip asset manager.
Hargreaves Lansdown’s share price has slipped into the red in London this afternoon, having given up 0.75 percent to 1,898.62p as of 14:23 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.1 percent higher at 7,429.55 points. The group’s shares have given up about 3.5 percent of their value over the past year, as compared with about a 1.5-percent fall in the Footsie.
Deutsche Bank lifts stance on HL
Deutsche Bank lifted its rating on Hargreaves Lansdown from ‘sell’ to ‘hold’ today, while maintaining its valuation on the shares at 1,775p. Sharecast quoted the broker as commenting that the last month has been overshadowed by the suspension of the Woodford fund – held in six of the FTSE 100 group’s portfolios – which has seen HL shares drop 15 percent since June 3.
The analysts reckon that while the suspension is “clearly a negative for Hargreaves in terms of reputation”, the fallout from Woodford “is now well reflected in the recent share price decline”.
Other analysts on FTSE 100 group
The 11 analysts offering 12-month targets for the Hargreaves Lansdown share price for the Financial Times have a median target of 1,775.00p, with a high estimate of 2,490.00p and a low estimate of 1,332.00p. As of June 21, the consensus forecast amongst 14 polled investment analysts covering the blue-chip group has it that the company will underperform the market.
Peel Hunt recently reaffirmed the FTSE 100 company as a ‘hold,’ commenting that the press focus on Hargreaves Lansdown was partly a function of its success.