Analysts upgrade Hargreaves by 50% ahead of fee announcement

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Morgan Stanley has upped its price target on Hargreaves Lansdown by 50% after the bank's analysis suggested consumers are prepared to pay more for advice and platforms than previously anticipated.

Analysts at the bank have raised Hargreaves from neutral to overweight and upped their price target from £11.13 to £16.70, having carried out proprietary research, competitor analysis and meetings with the FCA. The move comes on the eve of Hargreaves' announcement of its new pricing structure, due to take place tomorrow morning. Morgan Stanley expects the new model to be revenue-neutral for the business, with a structure close to the current net 63bps charged for funds. The firm's AlphaWise study, surveying over 1,000 retail investors with average investments of £51k each, pointed ...

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