LPL Financial's (LPL) Valuation Readjusted After Recent Rebound

LPL Financial Holdings Inc. (NASDAQ:LPLA) ranks among the best financial stocks to buy according to billionaire Israel Englander. On December 11, UBS began coverage of LPL Financial Holdings Inc. (NASDAQ:LPLA) with a Neutral rating and a $406 price target. The firm noted LPL’s solid brand and prominence in the independent wealth sector as favorable characteristics, and that shares appear fairly valued after recovering from their October lows.

UBS anticipates recruitment and organic growth to rebound to the high single-digit range after the Commonwealth acquisition, though the firm stated that these targets are already built into consensus projections. LPL’s ICA duration structure, with 66% fixed, seems to reduce interest rate risk, as do enhanced asset and client cash levels.

That said, UBS raised caution about expense assumptions, with its 2026-2027 EPS forecasts around 7% below consensus, although the firm admitted that the stock’s valuation at 12.2x 2027 anticipated earnings seems decent.

LPL Financial Holdings Inc. (NASDAQ:LPLA) is an independent broker-dealer and investment advisory firm in the U.S. that offers technology, brokerage, and advisory services to financial professionals and institutions.

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Disclosure: None. This article is originally published at Insider Monkey.