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On Friday, JMP Securities analyst Devin Ryan increased the price target for LPL Financial Holdings (NASDAQ:LPLA) shares to $440, up from the previous target of $420, while maintaining a Market Outperform rating on the stock. The adjustment follows LPL Financial’s strong first quarter performance, which surpassed analyst expectations. According to InvestingPro data, the company, currently valued at $27.11 billion, is trading near its Fair Value, with a P/E ratio of 24.17.
LPL Financial reported a first-quarter adjusted earnings per share (EPS) of $5.15, which exceeded both JMP Securities’ estimate of $4.86 and the consensus estimate of $4.63. The company’s revenues reached $3.67 billion, reflecting a 1.4% improvement over JMP’s forecast. This revenue growth was primarily attributed to a significant increase in sales-based commissions, which saw a year-over-year rise of 58% and outperformed JMP’s estimates by 14%. These gains were partially offset by lower revenues from Investment Company Account (ICA) services, which fell $14 million short of JMP’s projections. InvestingPro analysis shows impressive revenue growth of 25.69% over the last twelve months, with a strong financial health score rated as "GOOD."
The firm’s expense management also impressed analysts, with core General and Administrative (G&A) expenses totaling $413 million, $12 million less than anticipated. Promotional expenses and acquisition costs also came in under budget, at $152 million and $43 million respectively, compared to JMP’s estimates of $160 million and $60 million.
LPL Financial’s EBITDA margin for the quarter stood at an impressive 52.2%, indicating strong profitability. The company’s tax rate and share count for the quarter aligned with JMP Securities’ expectations.
The revised price target of $440 reflects the firm’s positive financial momentum as it prepares for the remainder of the year, with the Market Outperform rating reaffirming JMP Securities’ confidence in LPL Financial’s prospects.
In other recent news, LPL Financial Holdings Inc. reported strong financial results for the first quarter of 2025, surpassing analysts’ expectations. The company achieved a record adjusted earnings per share (EPS) of $5.15, exceeding the forecasted $4.75. LPL Financial’s total advisory and brokerage assets increased to $1.8 trillion, marking a 3% rise from the previous quarter. The company also completed significant acquisitions, including the Investment Center and Commonwealth Financial Network, which are expected to add nearly $350 billion in client assets. LPL Financial has adjusted its full-year core general and administrative (G&A) guidance to a range of $1.730-$1.765 billion, reflecting improved operational efficiency. Additionally, LPL Financial plans to focus on reducing its leverage ratio following the Commonwealth acquisition. Analyst firms have shown interest in the company’s strategic growth initiatives, with positive reception noted for the Commonwealth acquisition. These developments highlight LPL Financial’s continued expansion and focus on operational excellence.
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