UPDATE: Goldman Sachs Downgrades LPL Investment (LPLA) to Buy

Goldman Sachs analyst Alexander Blostein downgraded LPL Investment (NASDAQ: LPLA) from Conviction Buy to Buy with a price target of $170.00.

The analyst comments "We continue to see LPL as an attractive business with a high-single-digit organic growth rate, expanding addressable market, and considerable EPS upside in a "normalized" rates environment. However, risks to spreads paid by the banks for sweep deposits amid significant liquidity in the system pose risks to 2022 EPS estimates (we are now marginally below the Street). Although the upside case remains intact (we see path to $14+ in EPS in 2024) and investors could ultimately look through rates-related revenue headwinds over the next 12-18 months, the downside case could also become more pronounced relative to other rate-sensitive stocks under our coverage (where the impact of low rates is fully in the run-rate). Our scenario analysis suggests that, at current levels, the market is not paying much for EPS optionality to the upside – partially reflective of these risks, while our upside scenario implies the stock could be worth ~$190 or 40% upside from current levels, keeping us Buy rated. In the report, we outline our framework across various rates scenarios and implications for the stock."

For an analyst ratings summary and ratings history on LPL Investment click here. For more ratings news on LPL Investment click here.

Shares of LPL Investment closed at $137.65 yesterday.

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