Wells Fargo upgraded LPL Financial to Overweight from Equal Weight with a price target of $285, up from $235. The stock’s risk/reward has “dramatically improved” post sweep rate cuts, and recent data points have been positive, the analyst tells investors in a research note. The firm says LPL;s valuation has contracted, making it discount versus peers attractive. Wells says sweep cash pricing was its top-of-mind concern and that the rate reduction “dramatically improved” the stock’s risk/reward skew, resulting in lower probability and less severity to the downside.
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