Shares of LPL Financial’s parent company on Monday fell 3.86% and were down 3.7% on Tuesday on news that Citigroup issued a "sell" rating on the stock (LPLA).
Citi Global Markets analyst William Katz Research initiated coverage of LPL Investment Holdings with a $32 price target. In a note sent to investors, Katz pointed to LPL’s 20% appreciation since its Nov. 18 IPO.
“While there is building market/economic momentum, we believe the bull case is already factored and the premium valuation may decay post IPO excitement," he explained in his report.
Last Tuesday, UBS analyst Alex Kramm issued his coverage of LPL with a 'neutral' rating.
His 12-month price target for the company is $38.
Kramm believes it could take “several quarters of delivering on core drivers of future growth (expected to be 20%+ in the medium term) for LPL to get full credit from investors,” he wrote in his Dec. 28 report. He also notes that advisor growth has been slower than historical averages over the last couple of years.