FTSE 100: 7778.79 ▼ -9.18 (-0.12%)
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|No. of shares out||474m|
|No. of shares floating||260m|
|No. of common shareholders||not stated|
|No. of employees||1043|
|Trading volume (10 day avg.)||1m|
|Profit before tax||£265m|
|Earnings per share||44.57p|
|Cashflow per share||45.92p|
|Cash per share||54.82p|
There has been stock market turbulence this year but Hargreaves Lansdown (HRGV) still justifies its significant premium valuation, says Numis.
Analyst James Hamilton retained his ‘hold’ recommendation and increased the target price from £16.55 to £18.61 after a trading update from the online stockbroker. The shares rose 2.2% to £19.16 yesterday.
Hamilton upped his profit forecasts by 2.2% for the year and 6.5% for next year after Hargreaves reported revenue of £150.6 million, and net inflows of £3.3 billion for the first four months of the year ‘despite the volatile and weak market conditions’.
‘These forecast increases take into account the increased level of investment into the helpdesk, operations, and technology teams, as well as digital marketing,’ he said.
‘As a consequence of our forecast upgrades, our target price increases...The structural growth story remains on track for the D2C platform industry, where Hargreaves is the category killer. Consequently, we believe Hargreaves justifies its significant premium valuation.’