LPL Financial Holdings: Takeaways following lunch with LPLA’s President/CFO; Reiterate Buy

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LPL Financial Holdings: Takeaways following lunch with LPLA’s President/CFO; Reiterate Buy

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LPL Financial Holdings

Takeaways following lunch with LPLA’s

President/CFO; Reiterate Buy

Reiterate Rating: BUY | PO: 511.00 USD | Price: 291.45 USD

Forecast NNA reacceleration in 2H26 18 June 2026

On Wednesday, we hosted a group lunch with LPLA President/CFO Matt Audette. Equity

Following the lunch, we reiterate our Buy rating as we continue to believe NNAs will

reaccelerate in 2H26 supported by (1) record recruiting pipeline and (2) deals Craig Siegenthaler, CFA Research Analyst

progressing from early-to-late stage. We also view its current valuation as attractive BofAS

relative to its fast EPS growth (EPS grew 3x in 5Ys) and target 20% in the future with +1craig.siegenthaler@bofa.com646 855 5004

8% NNAs under normal macro conditions. Following m/m improvement in May, we Kareem Seif

expect stronger monthly NNAs to continue into 4Q26 and once again exceed 7% Research Analyst

BofAS

annualized. While recruiting activity has reaccelerated to record levels, recruited assets +1 646 855 5759

are still well off their highs but we look for improvements q/q in 2Q-4Q26. kareem.seif@bofa.com

Eli Abboud

Large M&A is off the table… for now ResearchBofAS Analyst

Given LPLA’s desire to improve its NNAs organically, we don’t expect any large M&A +1 646 855 5791 eli.abboud@bofa.com

transactions over at least the next 12 months. However, once it reaches >6% NNAs for

Ivory Gao

several quarters (by mid-2027), LPLA could start evaluating large deals again and there Research Analyst

may be a few of them given PE ownership of two of the largest IBDs and succession- BofAS +1 646 855 5034

planning challenges at peers. ivory.gao@bofa.com