HRGLY - Hargreaves Lansdown: Bad News Priced In With FY22 Guidance; Rebound Ahead

• Shares fell 11.3% on Monday after FY21 results, and are now 39% below their May 2019 peak, an opportunity for long-term investors.
• FY21 results were strong, with year-end assets 30% higher, revenues growing 14.5%, EBIT growing 7.7% and EPS growing 8.2%.
• What disappointed investors was FY22 guidance, which reflects a post-COVID drop in retail trading and continuing low interest rates.
• We believe FY22 will see a revenue decline of 7%, followed by a strong recovery. We believe shares are trading at 30.5x trough EPS.
• With shares at 1,481p, we expect a total return of 72% (18.0% annualized) by the end of 2024. The Dividend Yield is 2.6%+. Buy.

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