HRGLY - Hargreaves Lansdown: Investment Case Still On Track; 2.9% Dividend Yield

• Hargreaves Lansdown shares have been volatile and have lost 8.9% since the trading update on May 13; the Dividend Yield is 2.9%.
• Operations are strong - revenues have continued to grow at double digits, while the asset base has risen by 28% in the last 10 months.
• However, it has benefited from COVID-related higher retail trading, and investors worry this will fade and also fear low interest rates.
• We believe any headwinds are temporary, and revenues will recover; there are also possible cost cuts and potential strategic interest.
• With shares at 1,614.5p, we expect an exit price of 2,489p and a total return of 67% (16.6% annualized) in less than 3 years. Buy.

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