LPL Financial Holdings is one of the largest independent broker-dealer platforms. The company provides technology and operational support to financial advisors.
In Q3, EPS exceeded expectations by 15%. Q4 saw a 6% beat. However, net new asset growth is slowing.
Net new assets annualized growth dropped to 3.5% in November, below typical performance. Management expects improvement later this year.
Client cash as a percentage of assets hit a historic low of 2.4%, which benefits revenue but poses risks in volatile markets.
Barclays set a price target of $435. The company has a market cap of $23 billion.
