Intel stock extends gains after report of possible U.S. government stake
On Wednesday, Morgan Stanley (NYSE:MS) increased its price target for LPL Financial Holdings (NASDAQ:LPLA) shares, raising it to $450 from the previous $330, while maintaining an Overweight rating on the company’s stock. The adjustment reflects a positive outlook on the firm’s earnings potential over the coming years. Currently trading at $384.20, LPL Financial has shown strong momentum, trading near its 52-week high of $390.23. According to InvestingPro data, six analysts have recently revised their earnings estimates upward for the upcoming period, reinforcing the positive sentiment.
The revised price target represents a substantial 36% increase from the former target and is based on a 16.0x multiple of the discounted 2027 estimated earnings per share (EPS). Morgan Stanley’s analysis indicates an anticipation of robust revenue growth for LPL Financial, although this is expected to be somewhat balanced by an increase in expenses. The company has demonstrated strong growth fundamentals, with revenue increasing by 25.69% in the last twelve months. Want deeper insights? InvestingPro offers comprehensive analysis of LPL Financial’s growth metrics and financial health scores in its exclusive Pro Research Report.
The research firm has updated its earnings estimates for LPL Financial, indicating a bullish stance on the company’s financial performance. Specifically, Morgan Stanley has raised its second-quarter 2025 EPS estimate by 5.3% to $4.38. The expectations for the following years have also been adjusted, with the 2025 estimated EPS increased by 10% to $18.32, the 2026 estimate by 17% to $22.24, and the 2027 estimate by 19% to $30.80. The company currently trades at a P/E ratio of 26.64, reflecting market confidence in its growth trajectory.
These revisions reflect a more optimistic view of LPL Financial’s ability to generate higher revenue, which is expected to outpace the predicted rise in expenses. The Overweight rating suggests that Morgan Stanley believes LPL Financial stock will outperform the average return of the stocks the analyst covers over the next 12 to 18 months.
The update from Morgan Stanley comes amidst a time when financial firms are navigating a complex economic environment, with investors closely monitoring analyst forecasts and company performance indicators to make informed decisions in the market.
In other recent news, LPL Financial Holdings has reported robust financial results for the first quarter of 2025, with an adjusted earnings per share (EPS) of $5.15, surpassing the forecasted $4.75. The company’s revenue reached $3.67 billion, marking a 1.4% increase over previous estimates. This growth was largely driven by a significant rise in sales-based commissions. Keefe, Bruyette & Woods analyst Kyle Voigt raised LPL Financial’s stock target to $405, citing an expected increase in commission and advisory revenues. Similarly, JMP Securities analyst Devin Ryan increased the price target to $440, reflecting confidence in the company’s financial momentum. LPL Financial’s EBITDA margin stood at an impressive 52.2%, and the firm reported a gross profit of $1.273 billion, highlighting strong profitability. The company also completed significant acquisitions, including the Investment Center and Commonwealth Financial Network, which are expected to add substantial client assets. These developments underscore LPL Financial’s strategic growth initiatives and operational efficiency improvements.
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