HALEY TAM | CITI
We have a positive view of both the near-term and longer-term outlook at Hargreaves Lansdown. Customer numbers grew 14 per cent year-on-year: impressive versus tough comparatives. Its price to earnings multiple looks high versus peers, but we believe this reflects its excellent long-term structural growth story.
JAMES HAMILTON | NUMIS
We believe we are near the beginning of a structural growth opportunity for the company as opposed to nearing the end. We believe the group will have seen its margin expand with this volume growth and so forecast 50.8 per cent pre-tax profits growth for final year 2011, which is ahead of consensus.
ROBIN SAVAGE | COLLINS STEWART
Growth of six per cent in assets under administration is impressive and investors should recognise that asset growth in one quarter grows the revenue receivable in the subsequent quarter. We think market forecasts for final year 2012 need to rise a further six per cent and for 2013 a further ten per cent.