Shares in D2C giant Hargreaves Lansdown fell today after analysts at RBC Capital Markets downgraded the stock on fears its share price will continue to struggle in the face of increasing competition.
Shares in the business have already tumbled by over a third this year, off as much as 38% from their peak of £15.49 at the start of 2014. Today they fell a further 2.7% to 938p, after RBC downgraded its view on the shares from outperform to sector perform. It warned any potential upside for the shares is limited in the near term, and cut its target price by 35% to £10.75. It said: "We believe potential upside is limited by HL's high valuation compared to the diversified financials sector, since we believe the market is awaiting clarity on HL's improved cash offering and since competit...
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