Hargreaves Lansdown (HL/) Earnings: FY Pretax Profit Falls Short, Dividend Per Share Up

Hargreaves Lansdown on Smartkarma

Analysts on Smartkarma, like Jesus Rodriguez Aguilar, are closely following the developments around Hargreaves Lansdown. In his research report titled “CVC Consortium/Hargreaves Lansdown: Cheap Possible Offer,” Aguilar notes that the private equity consortium comprising CVC, Nordic Capital, and Abu Dhabi Investment Authority has raised the potential acquisition offer to 1,140p per share in cash, including a 30p final dividend. Despite this increase, Aguilar suggests that the offer may still be undervaluing Hargreaves Lansdown, with comparisons to peer multiples indicating a potential price of 1,326p per share.

The report also highlights that the offer implies a valuation of 17.2x next twelve months forward P/E and a dividend yield of 4.25%, both of which are considered historically low for Hargreaves Lansdown. Additionally, Aguilar mentions the inclusion of a rollover equity alternative in the offer, which he believes could be a strategy to involve the founders in the company’s future success. With insights like these from independent analysts, investors can gain valuable perspectives on the potential outcomes for Hargreaves Lansdown amid the acquisition talks.

A look at Hargreaves Lansdown Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Investment analysts foresee a promising long-term outlook for Hargreaves Lansdown, a company that provides investment management services in the UK. With a strong overall performance based on the Smartkarma Smart Scores, Hargreaves Lansdown received impressive ratings for Dividend, Growth, Resilience, and Momentum factors, indicating a solid foundation for growth and stability. The company excels in offering attractive dividend returns, displaying consistent growth potential, demonstrating strong resilience in challenging market conditions, and maintaining positive momentum in its operations.

Investors are optimistic about Hargreaves Lansdown‘s future prospects given its favorable Smart Scores across key factors. The company’s focus on providing stock brokerage, pension fund management, financial planning, and asset and wealth management services positions it well for continued success in the investment management sector. With its well-rounded performance metrics and comprehensive suite of services, Hargreaves Lansdown stands out as a promising investment opportunity for those looking for long-term growth and stability in the UK market.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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