LPL Financial Holdings Inc

LPLA: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$325.00	Tgpdw	Jcvxqdnr

LPL Financial Earnings: 2024 Likely to Show Changes in Multiple Key Metrics

Michael Wong

Feb 2, 2024

LPL Financial had a strong 2023, with recovering equity markets and high interest rates boosting earnings, and 2024 should see continued growth in revenue and earnings. The company reported net income of $1.07 billion, or $13.69 per diluted share, on $4 billion of gross profit in 2023. Gross profit increased 26% from the previous year with about 70% of the increase from client cash-related revenue, as high interest rates benefited the company, and the remainder driven by high client asset levels. We don’t anticipate making a material change to our $289 fair value estimate for narrow-moat-rated LPL Financial. We assess the shares as modestly undervalued.

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