Citizens JMP reiterates LPL Financial stock rating with $440 target

Published 01/08/2025, 10:58
Citizens JMP reiterates LPL Financial stock rating with $440 target

Investing.com - Citizens JMP analyst has reiterated a Market Outperform rating and $440.00 price target on LPL Financial Holdings (NASDAQ:LPLA), which is currently trading at $395.73, near its 52-week high of $403.57.

The firm continues to view LPL as a compelling opportunity for investors, noting that shares currently trade at approximately 16.5 times their 2026 earnings per share estimate. According to InvestingPro data, LPL’s current P/E ratio stands at 27.18x, with the stock showing impressive returns of 85.06% over the past year.

Citizens JMP highlighted that LPL has delivered some of the best organic growth in the industry over the past 20+ years, particularly notable given its leading scale, maintaining a mid-single-digit net new asset rate that remains peer-leading despite recent slowdowns in advisor movement. InvestingPro analysis reveals strong revenue growth of 25.69% in the last twelve months, supporting this growth narrative. Get access to 10+ additional ProTips and comprehensive financial metrics with InvestingPro.

The research firm anticipates more enterprise wins and M&A activity to supplement LPL’s organic growth, projecting that the company can grow gross profits in the low-teens percentage range or higher, with bottom-line earnings increasing even faster.

Citizens JMP estimates LPL is close to joining the S&P 500, where the average company trades at approximately 20x earnings, and believes LPL’s growth and return characteristics are well above average, supporting their $440 price target based on a 19x price-to-earnings multiple on 2026 estimated earnings.

In other recent news, LPL Financial Holdings Inc. reported its second-quarter earnings for 2025, exceeding analysts’ expectations with an adjusted earnings per share (EPS) of $4.51, compared to the projected $4.24. This resulted in a 6.37% positive surprise for the company. However, LPL Financial experienced a revenue shortfall, recording $3.84 billion against the anticipated $3.76 billion. Despite the mixed financial results, the company’s performance in earnings per share was notable. Analysts had predicted these figures, and the results have been closely observed by investors. The earnings report highlights key developments for LPL Financial as it navigates its financial landscape. These recent updates are crucial for stakeholders monitoring the company’s progress.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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