Hargreaves a 'definite buy' on share weakness as profits soar

UK managers including Lindsell Train founder Nick Train have labelled Hargreaves Lansdown a "definite buy" with enormous growth potential, after the group beat analysts' expectations last week.

The asset manager announced funds under management had risen 41% to £24.6bn in the last year, with revenue up 31% to £207.9m, and underlying profit before tax rising 42% to £129m. The results were better than brokers had predicted, leading Numis Securities to upgrade the stock from ‘hold’ to ‘add’, after AUM beat its forecast by £300m. Investors ploughed into the stock after digesting the results, with Hargreaves’ share price notching a double-digit gain that pushed the shares back up towards the 500p mark. UK managers said the rebound was justified, arguing the stock had been over...