LPL Financial Holdings Inc.: Model update

Research evidence excerpt

LPL Financial Holdings Inc.: Model update

Michael Cho AC North America Equity Research

(1-212) 622-3619 10 July 2026 J P M O R G A N

michael.cho@jpmchase.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

LPL is the largest independent broker-dealer in the US. Strong

AUM growth, industry consolidation, and higher rates have

benefitted LPL in recent years. While we acknowledge the

broader interest rate debate and Commonwealth integration/

attrition, we like LPL’s track record of execution and think LPL’s

return to generating consistent net new asset growth (and asset

monetization) will support more revenue growth and higher

earnings over the medium-term.

Valuation

YTD 1m 3m 12m

Abs -12.8% 8.0% -1.0% -18.2% Our Dec-26 price target of $408 is based on 14x our 2027E EPS,

Rel -33.4% 3.7% -14.5% -51.1% which is a modest premium to current trading given our view that

net new asset growth continues to rebound from recent lows. WeCompany Data

think consistent execution (improving net new asset growth,

Shares O/S (mn) 80

52-week range ($) 403.58-260.15 margins, and earnings) as well as a credibly expanding

Market cap ($ mn) 25,028.79 addressable market will be supportive of overall valuation

Exchange rate 1.00 levels.

Free float (%) 99.0%

3M ADV (mn) 1.00

3M ADV ($ mn) 294.4

Performance DriversVolatility (90 Day) 38

Index RUSSELL 2000

BBG ANR (Buy | Hold | Sell) 13|4|0

Key Metrics (FYE Dec)

$ in millions FY25A FY26E FY27E

Financial Estimates

Investment banking 8,161 11,030 12,853

Brokerage commissions 4,505 4,903 5,199

Asset management income - - -

Trading income - - -

Total non-interest income 4,185 4,802 5,260

Net interest income - - -

Net revenue 16,852 20,734 23,312

Operating expense - - -

Adj. pre provison profit 0 0 0

Adj. PBT 1,150 2,061 2,694