Broker snap: Strong performance from Hargreaves Lansdown, says Singer

1st Sep 2011 12:53

Singer Capital Markets says its fair value rating on wealth management firm Hargreaves Lansdown (HL) is currently under review but has highlighted the group's in-line final results, strong dividend payment and robust current trading."Considering the increasing volatility of markets towards the company's June year end, HL's record final results demonstrate the strength of the business," said analysts Sarah Ing and Steve Keeling.The firm, which in 2011 celebrated its 30th year since formation, reported assets under administration of £24.6bn, up from £17.5bn the year before. The total dividend was raised by 59% on last year at 18.87p."Since the year end, new business flows and client recruitment have continued to be strong (up 30% since last year) despite the fall in equity markets," the broker notes."Our rating is currently under review but the core attractions of HL's brand strength and strong cash generation remains evident."The target price is left at 550p.BC