Wells says uncertainty could weigh on LPL as cash sweep 10-Q raises eyebrows

Wells Fargo says that while LPL Financial’s (LPLA) 10-Q disclosure related to cash management certainly raises eyebrows, it’s important to keep in mind that the company’s approach to cash management is far different from wirehouses that faced scrutiny, plus there are potential offsets. Given LPL’s thoughtful approach to cash management, small cash exposure per account and reasonable rate paid, Wells sees the company well positioned, but acknowledges the uncertainty could weigh on the shares in the near term. The firm has an Overweight rating on the shares with a price target of $310.