Goldman Sachs analyst Alexander Blostein raised the price target on LPL Financial Holdings (NASDAQ: LPLA) to $400.00 while maintaining a Buy rating.

The analyst comments "LPLA reported 3Q26 EPS of $5.97, 5% above the Street’s $5.66 (Visible Alpha Consensus Data). Adjusted EBITDA of $864mn was 4% above Consensus largely on the back of lower G&A expenses. Following well-managed expenses in 3Q, LPLA lowered its 2026 core G&A to $2,140mn to $2,160mn (from $2,140mn-$2,165mn), including ~5%-6% growth in core G&A expenses plus $350mn-$355mn of Commonwealth-related G&A. Cash balances ended 3Q at $56.5bn (down 1% q/q), and total client assets were $2,563bn at the end of the quarter, with 4.5% annualized organic growth (and September showing further slippage in NNA < 4%). Into October, LPLA expects to generate ~3% organic growth given quarterly fee billings and a larger attrition item (reversing the large win in August), but expects cash balances to decline only ~$1.2bn despite a $2.6bn headwind from quarterly advisory fee billings. Going forward, management expects core advisor recruiting to support ~4%-6% organic growth, with institutional wins needed to drive growth toward the high end of its mid-to-high single digit range (likely not impacting earnings until 2028 given generally long sales cycles). That said, LPLA struck a positive tone on institutional deals and we expect the firm to become more active here as Commonwealth transition comes to a close. LPLA also updated its Commonwealth run-rate EBITDA guide to ~$415mn, as better-than-expected synergies have helped offset lower retention (83% now vs. 90% at underwriting). Overall, we are raising estimates on better cash economics, disciplined expense management and greater buyback accretion following the recent share price underperformance, partially offset by a more tempered baseline NNA growth outlook. Importantly, we see a meaningful step-up in LPLA’s earnings base heading into 2027 and current valuation remains attractive (~10X 2027 P/E), in our view. Further, potential changes to LPLA’s cash sweep pricing model provide additional upside optionality to valuation multiple, although management does not expect the results of its review to be finalized until 1H27. We raise our 2026/27/28E EPS estimates to $23.67/$31.79/$37.27 from $23.42/$30.99/$37.51 and raise our 12-month PT to $400 (representing 26% upside from current levels)."