Numis upgrades Hargreaves following results

Broker Numis Securities has upgraded Hargreaves Lansdown from 'hold' to 'add' after the group reported a significant hike in profits in its annual results this morning.

Numis said recent share price weakness has left the stock looking attractive, adding the current price does not reflect Hargreaves' position as a market leader. The upgrade comes after Hargreaves today reported AUM had risen 41% to £24.6bn in the last year, with revenue up 31% to £207.9m and underlying profit before tax rising 42% to £129m. Numis said the AUM rise was £300m ahead of their forecast, driving it to raise its target price from 463p to 483p. "Given the marginal margin on new AUM being close to 100%, we see the scope for the overall cost to clients to fall consistently a...